India’s residential real estate market experienced a slowdown in 2025, as rising property prices, IT sector layoffs, and geopolitical uncertainties dented housing demand. ANAROCK Research data shows that housing sales in the top seven cities fell by 14%, with approximately 3,95,625 units sold compared to 4,59,645 units in 2024.
Interestingly, while sales volumes declined, the overall transaction value rose 6% year-on-year, from roughly Rs. 5.68 lakh crore in 2024 to over Rs. 6 lakh crore in 2025. This suggests a shift in buyer preference toward higher-value homes despite softer overall demand.
City-Wise Sales Performance
The Mumbai Metropolitan Region (MMR) continued to lead sales with around 1,27,875 units sold, though this marked an 18% drop from the previous year. Pune followed with 65,135 units, down 20%, while Bengaluru’s sales dipped marginally by 5%, totaling 62,205 units.
NCR recorded 57,220 units sold, an 8% decline, and Hyderabad saw a steep 23% fall, selling 44,885 units. Kolkata and Chennai posted 16,125 and 22,180 units sold respectively, with Chennai being the only city to register growth of 15%. Together, MMR, Pune, Bengaluru, Hyderabad, and NCR accounted for 90% of total sales across the top seven cities.
New Launches on the Rise
Despite weaker sales, new housing launches increased slightly in 2025. The top seven cities saw 4,19,170 new units launched, up 2% from 4,12,520 units in 2024. MMR and Bengaluru were the largest contributors, accounting for nearly 48% of the new supply.
MMR launched approximately 1,26,140 units, though down 6% from 2024, with over 72% priced under Rs. 1.5 crore. Bengaluru added 74,260 units, a 5% increase, mostly in the Rs. 75 lakh-2.5 crore range. Pune contributed 67,955 units, a 12% rise, with the bulk in sub- Rs. 1.5 crore. NCR recorded 61,775 new launches, a 14% increase, with over half in the luxury and ultra-luxury segment priced above Rs. 2.5 crore. Chennai and Kolkata saw impressive growth of 30% and 31%, respectively, with the majority of supply in the sub- Rs. 2.5 crore segment.
Luxury Homes Steal the Spotlight
Luxury and high-value homes continued to see strong demand. Post-pandemic trends toward bigger, branded residences persisted, with 21% of new supply in the top seven cities priced above Rs. 2.5 crore in 2025, up from 18% in 2024. Delhi-NCR led price growth with a 23% rise, from Rs. 7,550/sq. ft. in 2024 to about Rs. 9,300/sq. ft. Other major cities recorded single-digit appreciation of 4–9%, down from double-digit growth in previous years.
Unsold Inventory Trends
Unsold inventory across the top seven cities rose 4% by year-end 2025, totalling around 5.77 lakh units, due to lower demand and higher new launches. Hyderabad and MMR saw slight declines of 2% and 1%, respectively, thanks to restrained supply. Bengaluru, however, recorded a significant 23% increase in unsold stock, highlighting uneven absorption across regions.
Looking Ahead to 2026
Anuj Puri, Chairman of ANAROCK Group, notes, “2025 has been a year of broad-spectrum upheaval including geopolitical turmoil, layoffs in the IT sector, tariff tensions and other uncertainties. The year’s trend was of sale volumes stabilizing at around 4 lakh units across the top 7 cities, but growth in overall sales value. Our data shows that more than 21% of the new supply was launched in the above Rs. 2.5 Crore price bracket. Interestingly, the average residential price growth rate has tapered down from double digits in previous years to single digits in 2025. Prices in the top 7 cities collectively rose 8% annually, and only NCR saw double-digit growth at 23% - largely due to a higher new supply of pricier homes. Out of NCR’s total new supply of 61,775 units during the year, over 55% was priced over Rs. 2.5 Crores.”
He adds that the sector’s performance in 2026 hinges on several key factors, most notably rate cuts by the RBI and price control by developers. Amid the currently favourable economic outlook, further repo rate cuts leading to lower home loan interest rates can cause demand to revive significantly.
The 2025 trends suggest a clear market narrative: while mid-segment sales are slowing, luxury and high-end homes remain resilient, and developers catering to aspirational buyers are likely to see continued opportunities.
