India’s residential real estate market witnessed a 14% year-on-year decline in housing sales in 2025, even as new project launches increased, impacted by rising property prices, IT sector layoffs, geopolitical tensions, and broader economic uncertainties, according to a report by ANAROCK.
Despite these headwinds, the market showed resilience in terms of overall transaction value, underscoring a shift toward higher-priced housing across major cities.
Housing Supply Rises, But Sales Volumes Fall
New housing supply across India’s top seven cities rose marginally in 2025, with developers launching 4.19 lakh units, a 2% increase compared to the previous year.
However, housing sales declined sharply. Approximately 3,95,625 units were sold during 2025, compared to 4,59,645 units in 2024, reflecting the 14% drop in volumes.
According to ANAROCK, the slowdown was driven by:
- Hardening residential property prices
- Layoffs and hiring uncertainty in the IT sector
- Geopolitical instability and tariff-related tensions
- Cautious buyer sentiment amid macroeconomic volatility
MMR and Bengaluru Dominate New Launches
The Mumbai Metropolitan Region and Bengaluru emerged as the largest contributors to new housing supply in 2025. Together, the two markets accounted for nearly 48% of all new launches during the year.
In terms of sales, western India continued to dominate:
- Pune recorded sales of approximately 65,135 units, marking a 20% year-on-year decline
- Mumbai Metropolitan Region and Pune together contributed 49% of total residential sales across the top seven cities
Market Stability Amid Volatility
Commenting on the trend, Anuj Puri, Chairman of ANAROCK Group, said:
“2025 has been a year of broad-spectrum upheaval, including geopolitical turmoil, layoffs in the IT sector, tariff tensions and other uncertainties. Sales volumes stabilised at around 4 lakh units across the top seven cities, even as overall sales value continued to grow.”
This trend reflects a market where fewer homes are being sold, but at higher average prices, helping developers maintain revenue momentum.
Price Growth Moderates To Single Digits
The report also noted a cooling in residential price growth. After witnessing double-digit annual price increases in recent years, average housing prices across the top seven cities rose by around 8% in 2025, entering single-digit territory.
The exception was National Capital Region (NCR), where prices surged 23% year-on-year. This sharp rise was largely attributed to the nature of new supply entering the market.
Out of 61,775 new units launched in NCR during 2025, over 55% were priced above ₹2.5 crore, skewing average prices upward due to a higher concentration of premium and luxury housing.
Outlook For 2026
While housing supply remains steady and demand is holding up in value terms, ANAROCK expects sales volumes to remain under pressure unless affordability improves and job market confidence strengthens—particularly in IT-driven urban centres.
The 2025 data highlights a clear shift in India’s housing market toward premiumisation, even as broader economic uncertainty reshapes buyer behaviour across the country’s major cities.
