India’s residential real estate market witnessed a clear slowdown in 2025, with housing sales across seven major cities declining by 14% year-on-year to around 3.96 lakh units. This marked a notable drop from the nearly 4.6 lakh homes sold in the previous year. The moderation in demand was largely attributed to rising property prices, global and domestic economic uncertainties, and cautious buyer sentiment, especially due to job market volatility in sectors such as information technology. Despite lower sales volumes, the overall value of homes sold increased by about 6% to more than ₹6 lakh crore, highlighting a growing preference for higher-priced and premium homes.
Within this broader slowdown, southern Indian cities displayed mixed performance. Chennai emerged as a standout market, registering a strong 15% year-on-year increase in housing sales with approximately 22,180 units sold in 2025. This growth contrasted sharply with other southern hubs. Bengaluru recorded a modest 5% decline in sales to around 62,205 units, while Hyderabad faced a steeper contraction of 23%, with sales falling to about 44,885 units. Collectively, these cities accounted for roughly 1.29 lakh units sold, underscoring the divergence within the southern real estate market.
Other major regions also experienced declining sales during the year. The Mumbai Metropolitan Region, while retaining the highest sales volume, saw an 18% year-on-year drop to nearly 1.28 lakh units. Pune followed with a 20% decline, selling around 65,135 units, while the National Capital Region recorded an 8% reduction with approximately 57,220 units sold. These trends reflect a widespread recalibration across India’s residential property markets rather than a region-specific downturn.
On the supply side, new housing launches across the top seven cities remained relatively resilient, increasing marginally by 2% year-on-year to about 4.19 lakh units. However, slower absorption combined with steady supply led to a 4% rise in unsold inventory, which reached approximately 5.77 lakh units by the end of 2025. Bengaluru, in particular, experienced a sharp increase in unsold stock, indicating softer demand conditions.
Overall, 2025 emerged as a year of adjustment for Indian real estate. Buyers became more selective, gravitating toward premium and luxury housing, while developers adopted disciplined supply strategies to maintain price stability. Chennai’s strong performance amid a national slowdown highlighted how localized economic factors and end-user demand can shape divergent outcomes within the same regional market.
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