After two years of booming real estate sales, the Indian housing market seems to be taking a pause. A fresh report shows that housing sales have dropped by 19% year-on-year in the first quarter (January–March) of 2025 across the eight biggest cities in India. While property prices have kept climbing, buyers now seem to be stepping back due to rising costs and growing economic uncertainty.
Let’s break down what’s happening in the market, which cities are seeing the biggest drop, and what this means for buyers, sellers, and real estate developers.
Sales Down in Mumbai, Hyderabad, Pune & Delhi NCR
According to the Real Insight Residential Q1 2025 report, housing sales fell sharply in top cities compared to the same time last year.
Here’s a look at the year-on-year (YoY) fall in sales:
- Mumbai: -26%
- Hyderabad: -26%
- Pune: -25%
- Delhi NCR: -16%
- Ahmedabad: -17%
The overall sales across all eight major cities were 98,095 units in Q1 2025, down from 1,20,642 units in Q1 2024.
Interestingly, only Bengaluru and Chennai saw an increase in home sales, rising by 13% and 8% respectively. These cities are often seen as more stable due to strong tech industry jobs and balanced property prices.
What’s Causing This Sudden Drop in Sales?
There are multiple reasons behind this dip:
🏠 1. High Property Prices
Over the past few years, housing prices have steadily increased. This has pushed many middle-class buyers out of the market, especially in cities like Mumbai and Delhi, where even small flats cost crores.
🌍 2. Global Uncertainty
As per Dhruv Agarwala, CEO of Housing.com Group, global trade tensions and economic uncertainty are making buyers cautious. With ongoing wars and inflation across the globe, people are avoiding big-ticket investments like property.
💰 3. Loan & EMI Pressure
Rising interest rates have increased EMIs, making it harder for salaried buyers to afford home loans. This has made people delay or cancel their plans to buy homes.
Developers Also Reducing New Supply
It’s not just buyers who are slowing down. Builders are also becoming careful. New housing supply across these eight cities has fallen by 10% in Q1 2025 compared to last year.
Cities that saw the biggest fall in new launches include:
- Pune: -38%
- Hyderabad: -33%
- Ahmedabad: -23%
- Mumbai: -15%
Only Kolkata and Bengaluru have shown growth in new launches — up 138% and 82% respectively. This shows that developers in these cities are still confident due to consistent demand and better affordability.
City-Wise Breakdown: Sales and Supply Data
🏙️ Top Cities – Sales in Q1 2025 vs Q1 2024
| City | Q1 2025 Sales | Q1 2024 Sales | YoY Change |
| Mumbai | 30,705 | 41,594 | -26% |
| Hyderabad | 10,647 | 14,298 | -26% |
| Pune | 17,228 | 23,112 | -25% |
| Delhi NCR | 8,477 | 10,058 | -16% |
| Ahmedabad | 10,730 | 12,915 | -17% |
| Bengaluru | 11,731 | 10,381 | +13% |
| Chennai | 4,774 | 4,427 | +8% |
| Kolkata | 3,803 | 3,857 | -1% |
🏗️ Top Cities – New Launches in Q1 2025 vs Q1 2024
| City | New Launches Q1 2025 | Q1 2024 | YoY Change |
| Pune | 15,543 | 24,945 | -38% |
| Hyderabad | 10,156 | 15,095 | -33% |
| Ahmedabad | 2,384 | 3,116 | -23% |
| Mumbai | 31,322 | 36,784 | -15% |
| Chennai | 4,070 | 4,723 | -14% |
| Delhi NCR | 7,952 | 6,872 | +16% |
| Bengaluru | 18,183 | 10,000 | +82% |
| Kolkata | 3,534 | 1,485 | +138% |
What This Means for Buyers and Developers
For homebuyers, this might be a time to wait and watch. Prices are high, and if sales continue to fall, developers may offer discounts or festive offers in upcoming months to clear inventory.
For developers, especially in overbuilt markets like Pune and Mumbai, this could be a warning sign to avoid overbuilding and instead focus on mid-range or affordable housing where real demand lies.
Final Word: Market Cooling, Not Crashing
This slowdown doesn’t mean the housing market is crashing. It’s more of a correction or pause after two strong years. As inflation eases and interest rates stabilize, sales may bounce back. Until then, both buyers and builders seem to be moving with caution.
