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Housing sales in India's top nine cities declined sharply in the October & December quarter of 2025, slipping to their lowest level in over four years. Sales volumes fell 16% year-on-year to just over 98,000 units, reflecting softer demand and a cautious buying environment despite traditionally strong festive-season activity. New housing supply also moderated, with launches dropping 10% annually as developers calibrated project rollouts. While most major markets witnessed contraction, Delhi-NCR and Navi Mumbai stood out as exceptions, recording growth in both sales and supply. The broader trend points to premiumisation, with value growth holding up even as volumes weakened.
India's residential real estate market witnessed a notable slowdown in the fourth quarter of 2025, as housing sales across the top nine cities fell to a 17-quarter low. Total absorption during the quarter stood at 98,019 units, marking a 16% decline compared to the same period last year and a 2% drop on a quarter-on-quarter basis. This performance underscores a shift in market dynamics, where buyer caution and selective demand outweighed the seasonal boost typically seen during the festive months. Advertisement
With the exception of Delhi-NCR and Navi Mumbai, all other major cities reported a decline in housing sales. Navi Mumbai registered a 13% year-on-year increase in sales, while Delhi-NCR saw a 4% rise, supported by improved connectivity, infrastructure upgrades and sustained end-user interest. In contrast, cities such as Pune, Mumbai, Hyderabad and Thane recorded declines ranging from moderate to steep, reflecting affordability pressures and a recalibration of buyer expectations.
On the supply side, housing launches fell 10% year-on-year to 88,427 units in Q4 2025, indicating a cautious approach by developers. Quarter-on-quarter, new supply declined by 4%. Only Delhi-NCR, Navi Mumbai and Chennai recorded growth in new launches, while the remaining cities saw reductions of up to 30%. This moderation suggests that developers are aligning new project launches more closely with realistic absorption trends rather than speculative expansion.
Despite lower volumes, the market continued to display resilience in terms of value. The ongoing shift toward premium and higher-ticket-size homes has resulted in stable or rising aggregate values, even as the number of units sold declined. Buyers are increasingly prioritising quality, location and long-term livability over purely price-driven decisions.
Looking ahead, industry sentiment remains cautiously optimistic. With a relatively low base in 2025, improved liquidity for developers, and the potential for lower home loan rates following repo rate cuts, residential activity is expected to stabilise and gradually improve in 2026.
Source: Prop Equity
5th Jun, 2025
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