In the first quarter of 2025, India's housing market slowed. Home sales dropped by 23%, and the number of new homes being built fell by 34%.

In total, 1,05,791 homes were sold across India's top 9 cities in Q1 2025, which is less than the 1,36,702 homes sold during the same time last year (2024).

However, two cities, Bengaluru and Delhi-NCR, performed better than the others. Bengaluru witnessed a 10% increase in home sales, with 18,508 homes sold in Q1 2025, compared to 16,768 homes sold in Q1 2024. Likewise, Delhi-NCR saw a 10% increase, with 11,221 homes sold. Despite overall market slowed down, these two cities still managed to see growth in home sales.

But, in other cities like Hyderabad, Mumbai, and Pune, home sales dropped a lot. Hyderabad saw the biggest drop, with sales falling by 47%. Mumbai saw a 36% drop, and Pune saw a 33% drop.

In the first quarter of 2025, fewer new homes were built—only 80,774, compared to 1,22,365 in the same period last year. Bengaluru was the exception, with 17% more new homes built than last year. On the other hand, cities like Kolkata, Mumbai, and Pune saw the largest decreases in new home construction.

Even though home sales and construction have dropped, there is still strong demand for homes. The "absorption-to-supply ratio," which compares how many homes are being sold to how many are available, is still high. This means that while fewer homes are being built and sold, people are still buying homes at a steady pace. It was 131% in Q1 2025, slightly lower than 132% in the last quarter of 2024.

Bengaluru and Delhi-NCR both saw a 10% increase in home sales. Bengaluru sold 18,508 homes, up from 16,768 last year, and Delhi-NCR sold 11,221 homes.