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Housing sales across eight major cities declined by 4 per cent year-on-year to 84,827 units in the January-March quarter, according to Knight Frank India. The drop was mainly due to rising property prices and cautious buyer sentiment influenced by global geopolitical tensions. While key markets such as Mumbai, Delhi-NCR and Pune saw a fall in demand, cities like Bengaluru, Hyderabad and Chennai recorded modest growth. New housing supply also declined slightly, indicating a broader market slowdown and growing affordability concerns after a strong multi-year growth phase.
Housing sales across eight major Indian cities saw a 4 per cent annual decline to 84,827 units during the January-March quarter, compared to 88,361 units in the same period last year, as per data released by Knight Frank India. The slowdown comes amid continued price increases and cautious buyer sentiment linked to ongoing geopolitical tensions in West Asia. Advertisement
Demand remained uneven across markets. Key property hubs such as Mumbai, Delhi-NCR and Pune recorded a decline in residential sales, indicating pressure in higher-priced markets. In contrast, Bengaluru, Hyderabad, Chennai, Ahmedabad and Kolkata posted moderate growth, supported by relatively stable pricing and steady end-user demand.
Mumbai, the country's largest residential market, witnessed a 7 per cent drop in sales to 23,185 units. Delhi-NCR saw a sharper decline of 11 per cent to 12,734 units, while Pune also recorded an 11 per cent fall to 12,711 units. These declines reflect affordability concerns as property prices continue to rise across major urban centres.
On the other hand, Bengaluru reported a 5 per cent increase in sales to 13,092 units, driven by sustained demand from the IT sector. Hyderabad saw a marginal 1 per cent growth to 9,541 units. Chennai recorded a stronger performance with a 9 per cent rise to 4,763 units. Ahmedabad and Kolkata also posted gains of 2 per cent and 5 per cent, reaching 4,758 units and 4,043 units respectively.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, noted that the moderation in residential demand requires closer attention as it follows a prolonged period of growth. He stated that while some slowdown is expected after sustained expansion, rising property prices along with lower sales volumes are putting pressure on affordability and the pace at which inventory is absorbed.
He further indicated that geopolitical volatility has contributed to cautious buyer behaviour, resulting in softer demand during the quarter.
Supply trends also reflected a slowdown. New residential launches declined by 2 per cent year-on-year to 94,855 units, suggesting that developers are taking a measured approach amid changing market conditions. This comes after a period of strong supply additions over the past few years, especially in premium and luxury segments.
Over the last few years, India's residential market has witnessed a strong recovery driven by low interest rates, rising incomes and post-pandemic demand for home ownership. However, the current data indicates a phase of consolidation, with affordability emerging as a key concern, particularly in high-value markets.
Source PTI
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