Skyrocketing residential prices and geopolitical headwinds have slowed the Indian housing market's bull run in Q1 2025. According to the latest ANAROCK data, the year's first quarter saw sales drop 28% across the top 7 cities against the same period in 2024. Approx. 93,280 units were sold in Q1 2025 in the top 7 cities, in contrast to all-time high sales of over 1.30 lakh in Q1 2024.
New launches across the top 7 cities remained above the one lakh mark but saw a 10% yearly decline – from approx. 1,10,865 units in Q1 2024 to approx. 1,00,020 units in Q1 2025.
MMR and Bengaluru saw the maximum new supply in Q1 2025, accounting for 52% of the total new launches across the top 7 cities. While MMR saw new supply drop by 9% annually, Bengaluru saw new supply increase by 27% in this period. NCR, Bengaluru and Kolkata saw supply rise by 53%, 27% and 26%, respectively, while the other cities recorded supply declines - with Hyderabad recording the highest 55% yearly decrease.
Though new launches stayed above the 1 lakh mark in Q1 2024, unsold inventory dropped by 4% annually – from approx. 5,80,890 units by Q1 2024-end to approx. 5,59,810 units by Q1 2025-end. Among the top cities, Pune saw the highest decline of 16% in its available stock in Q1 2025. In contrast, Bengaluru saw its unsold stock rise by approximately 28% - to approx. 58,660 units - by Q1 2025-end.
India's overall economic scenario remains positive, with GDP growth rate pegged to be the highest globally and inflation also under control. However, rising housing prices and global headwinds like ongoing geopolitical tensions and a weak global economy have taken their toll on India's residential market activity. These factors cascaded down into the housing market in Q1 2025.
The top 7 cities saw approx. 1,00,020 units launched in Q1 2025, against approx. 1,10,865 units in Q1 2024 - a 10% decline. The key cities contributing to new launches in Q1 2025 were the Mumbai Metropolitan Region, Bengaluru, Pune, and the National Capital Region, which accounted for 80% of the quarter's supply addition.
In Q1 2025, the MMR (Mumbai Metropolitan Region) saw approximately 30,755 new units launched, reflecting a 9% decline compared to Q1 2024, with over 56% of the new supply falling within the sub-Rs 80 lakh budget segment. On the other hand, Bengaluru experienced a 27% increase in new supply, adding around 20,855 units, with approximately 53% of the supply in the luxury segment priced above Rs 1.5 crore. Pune saw a 10% decrease, with around 16,860 new units launched, compared to 18,770 units in Q1 2024, and approximately 79% of the new supply was in the mid and premium segments (Rs 40 lakh to Rs 1.5 crore). NCR experienced a significant rise in new supply, increasing by 53%, with 11,120 units launched in Q1 2025, compared to 7,270 units in Q1 2024, with a notable 70% of the supply in the ultra-luxury segment (priced above Rs 2.5 crore).
Hyderabad saw a steep 55% decline in new supply, with approximately 10,275 units launched in Q1 2025, compared to 22,960 units in the same period of 2024, and over 70% of the new supply was in the luxury and ultra-luxury segments (priced above Rs 1.5 crore). Chennai also witnessed a 35% decline, with around 4,755 units added, of which at least 81% were in the mid and premium segments (priced between Rs 40 lakh to Rs 1.5 crore). Lastly, Kolkata recorded a 26% rise, adding approximately 5,400 units, with around 59% of the new supply in the affordable and middle range (priced up to Rs 80 lakh).
In Q1 2025, the MMR (Mumbai Metropolitan Region) recorded the highest housing sales, with approximately 31,610 units sold, reflecting a 26% decrease compared to Q1 2024, when around 42,920 units were sold. Pune experienced a 30% decline in sales, with approximately 16,100 units sold in Q1 2025, down from 22,990 units in the same period of 2024. Bengaluru saw a 16% drop, with about 15,000 units sold in Q1 2025, compared to 17,790 units in Q1 2024. NCR witnessed a 20% decline, with sales falling from 15,650 units in Q1 2024 to 12,520 in Q1 2025.
Hyderabad saw the most significant decline of 49%, with only 10,100 units sold in Q1 2025, down from 19,660 in Q1 2024. Chennai's sales decreased by 26%, with approximately 4,050 units sold in Q1 2025, compared to 5,510 units in Q1 2024. Kolkata also saw a 31% decline, with sales falling from 5,650 units in Q1 2024 to approximately 3,900 units in Q1 2025.
Average residential property prices across the top 7 cities saw a significant jump in the last year, ranging between 10-34% in Q1 2025 when compared to Q1 2024. This was primarily due to steep new supply additions in the luxury and ultra-luxury segment and strong demand. NCR and Bengaluru recorded the highest annual price jump of over 34% and 20%, respectively.
Despite a supply of over one lakh new units in the top 7 cities in Q1 2025, the overall available inventory dropped by 4% in Q1 2025 when compared to Q1 2024. The total available inventory in the top 7 cities as of Q1 2025-end stands at approx. 5.60 lakh units. At 16%, Pune saw the highest reduction in unsold inventory in Q1 2025 compared to Q1 2024.
