Against the backdrop of worsening geopolitical concerns that can deeply impact the domestic job market, sales fell in all key residential markets except Bengaluru and Chennai
Mumbai, 16thApril, 2025: Home sales across India’s eight prime residential markets in the January-March period fell 19% over last year, as rising property prices and slowing growth forced buyers to exercise caution, says the latest report by digital real estate transaction & advisory platform PropTiger.com.
According to the Real Insight Residential: Q1 2025 report (January–March 2025) by PropTiger.com—part of REA India, which also owns Housing.com— new home supply also dropped 10% in the first quarter of the calendar year, as developers adjusted expectations amid a dramatic price appreciation of the past couple of years, which made housing unaffordable for a large section of buyers in the world’s most populous country.
“The huge spike in prices had already started to show its adverse impact on sales. With a global trade war now bringing new uncertainty, it is only natural for buyers to adopt a cautious approach to investment, particularly in something so big as real estate,” said Mr. Dhruv Agarwala, Group Chief Executive Officer, Housing.com and PropTiger.com.
The sales decline could have been a lot sharper if not for the 25-basis-point rate cut announced by the Reserve Bank of India (RBI) in February, Mr. Agarwala added.
Most urban Indians rely on housing loans to make a house purchase. Repo rate is the benchmark that determines the interest they would pay on this credit. A downward change in this rate is a certain measure to boost buyer confidence.
Sales fall across cities barring Bengaluru, Chennai
According to the report, less than 100,000 residential units were sold in the January-March quarter, with most cities covered in the analysis showing a fall in numbers. While Bengaluru and Chennai bucked this trend, Hyderabad, MMR and Pune witnessed the sharpest sales drop.
Signs of a market correction were also visible through a dip in new supply, with five of the eight cities showing an annual decline in launches. Pune, Hyderabad and Ahmedabad registered the sharpest fall in numbers, the report showed.
| Sales (UNITS) | |||||
| City | Q1 25 | Q4 24 | Q1 24 | QoQ | YoY |
| Ahmedabad | 10,730 | 10,170 | 12,915 | 6% | -17% |
| Bengaluru | 11,731 | 13,236 | 10,381 | -11% | 13% |
| Chennai | 4,774 | 4,073 | 4,427 | 17% | 8% |
| Delhi NCR | 8,477 | 9,808 | 10,058 | -14% | -16% |
| Hyderabad | 10,647 | 13,179 | 14,298 | -19% | -26% |
| Kolkata | 3,803 | 3,715 | 3,857 | 2% | -1% |
| Mumbai | 30,705 | 33,617 | 41,594 | -9% | -26% |
| Pune | 17,228 | 18,240 | 23,112 | -6% | -25% |
| Grand Total | 98,095 | 1,06,038 | 1,20,642 | -7% | -19% |
| New Launches (UNITS) | |||||
| City | Q1 25 | Q4 24 | Q1 24 | QoQ | YoY |
| Ahmedabad | 2,384 | 3,515 | 3,116 | -32% | -23% |
| Bengaluru | 18,183 | 15,157 | 10,000 | 20% | 82% |
| Chennai | 4,070 | 4,005 | 4,723 | 2% | -14% |
| Delhi NCR | 7,952 | 10,048 | 6,872 | -21% | 16% |
| Hyderabad | 10,156 | 9,066 | 15,095 | 12% | -33% |
| Kolkata | 3,534 | 3,091 | 1,485 | 14% | 138% |
| Mumbai | 31,322 | 30,127 | 36,784 | 4% | -15% |
| Pune | 15,543 | 13,652 | 24,945 | 14% | -38% |
| Grand Total | 93,144 | 88,661 | 1,03,020 | 5% | -10% |
NOTE: Housing markets covered in the report are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai and Thane) and Pune.
