India’s Real Estate Sales Fall in Q1 as Prices Rise: Report
Delhi-NCR, Hyderabad, Bengaluru Lead I&L Leasing in Q1 2025
India's Q1 2025 housing sales dropped 19% YoY as prices surged and new launches fell 10%, reveals PropTiger.com report covering eight top real estate markets.
Residential property sales in India's top eight housing markets fell by 19 per cent year-on-year during the January to March quarter, according to PropTiger.com's Real Insight Residential: Q1 2025 report. The drop comes amid escalating property prices and global economic uncertainty, prompting homebuyers to delay purchases.
The digital real estate platform, part of REA India, highlighted that housing supply also dipped by 10 per cent compared to the same period last year. Developers have scaled back new launches following consistent price increases that have placed homes out of reach for many prospective buyers.
Geopolitical instability and its potential impact on employment are weighing heavily on buyer sentiment. "The surge in prices had already begun to affect demand. The added pressure from ongoing global tensions has led buyers to reassess their investment plans," said Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com.
However, the decline in home sales might have been sharper if not for the Reserve Bank of India's 25 basis point repo rate cut announced in February. A lower repo rate can reduce interest costs for borrowers, potentially boosting buyer confidence in a market where most purchases depend on home loans.
Sales decreased across nearly all tracked cities except Bengaluru and Chennai. The steepest annual declines were recorded in Hyderabad, Mumbai Metropolitan Region (MMR), and Pune. Total home sales during the first quarter stood at 98,095 units, compared to 1,20,642 units in the same quarter last year.
In terms of city-wise sales performance:
- Ahmedabad saw a 17 per cent drop to 10,730 units
- Bengaluru registered a 13 per cent rise to 11,731 units
- Chennai recorded an 8 per cent increase with 4,774 units sold
- Delhi NCR declined by 16 per cent with 8,477 units sold
- Hyderabad fell by 26 per cent to 10,647 units
- Kolkata remained stable with a 1 per cent decrease to 3,803 units
- Mumbai declined by 26 per cent to 30,705 units
- Pune sales dropped by 25 per cent to 17,228 units
The report also tracked new residential project launches, revealing a 10 per cent year-on-year reduction across the top eight cities. Notably, launches declined in five out of the eight markets.
Key launch statistics include:
- Ahmedabad witnessed a 23 per cent fall to 2,384 units
- Bengaluru posted an 82 per cent rise with 18,183 units launched
- Chennai saw a 14 per cent drop to 4,070 units
- Delhi NCR experienced a 16 per cent rise to 7,952 units
- Hyderabad declined by 33 per cent to 10,156 units
- Kolkata surged by 138 per cent to 3,534 units
- MMR dropped by 15 per cent to 31,322 units
- Pune recorded a 38 per cent fall to 15,543 units
Overall, the report indicates a cautious market environment shaped by both domestic and global pressures. Developers are recalibrating their strategies amid affordability concerns, while buyers are closely watching economic signals before making large investments.
