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India's residential real estate market moved into a phase of normalisation during calendar year 2025, with housing demand moderating but remaining structurally resilient, according to Real Insight Residential CY 2025, PropTiger.com annual housing market report. Across the top eight cities, residential sales declined 12% year-on-year to 3,86,365 units, marking the lowest annual sales level since 2022. New housing supply also moderated, falling 6% to 3,61,096 units, the lowest since 2021. The October-December quarter recorded the weakest quarterly sales since the second quarter of 2023, even as prices remained stable due to limited ready inventory, calibrated supply and elevated construction costs. The report highlighted widening divergence across cities, with southern markets outperforming while some northern and western markets remained under consolidation.
India's residential real estate sector entered a phase of measured normalisation in calendar year 2025, as housing demand softened gradually while underlying fundamentals remained stable, according to PropTiger.com's Real Insight Residential CY 2025 report. The analysis noted that the moderation reflected demand recalibration rather than a structural slowdown. Advertisement
Across the top eight cities, total residential sales declined by 12% to 3,86,365 units in 2025, compared with 4,36,992 units in the previous year. This marked the lowest annual sales volume since 2022. Quarterly trends showed that sales in the October-December period fell 10% year-on-year and marginally on a quarter-on-quarter basis to 95,049 units, the weakest quarterly performance since the second quarter of 2023. Over the course of the year, quarterly sales eased gradually from 98,095 units in the first quarter to 95,049 units in the final quarter, indicating a re-timing of demand rather than a sharp contraction.
City-level performance diverged significantly during the year. Mumbai and Pune recorded sharp year-on-year declines in both quarterly and annual sales, while Delhi NCR remained the only major market to post year-on-year sales declines across all four quarters, reflecting prolonged consolidation. In contrast, Bengaluru, Hyderabad and Chennai demonstrated relative resilience. Chennai and Hyderabad emerged as consistent outperformers, registering strong quarterly and annual growth, while Bengaluru closed the year with improved momentum despite interim volatility.
New housing supply across the eight cities also moderated. Total launches fell 6% year-on-year to 3,61,096 units in 2025, the lowest annual supply level since 2021. While the October-December quarter saw a modest 4% year-on-year increase in new supply to 92,007 units, developers remained cautious, aligning launches closely with absorption trends. The slowdown in supply was most pronounced in the middle of the year, particularly during the second quarter, influenced by seasonal factors and heightened buyer caution.
Despite softer sales volumes, residential prices remained firm across key markets. The report attributed price stability to limited ready inventory, elevated construction costs and disciplined supply management by developers, who largely avoided aggressive discounting. PropTiger noted that the housing market is transitioning towards a more mature, execution-driven phase, where city-specific fundamentals and micro-market infrastructure are expected to play a larger role in shaping future growth patterns.
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