Housing Sales Drop 23% To 1.06 Lakh Units In Top 9 Cities During January-March: Report
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According to the PropEquity data, housing sales in Q1 2025 stood at 1,05,791 units as compared to 1,36,702 units in the same period last year.
Rise in home prices and caution on the part of investors due to geopolitical developments and certain weaknesses in the Indian economy have resulted in drop in sales, says Samir Jasuja, founder & CEO, PropEquity.
Housing sales in India’s top 9 cities fell by 23 per cent to 1.06 lakh units during January-March 2025, while supply declined by a whopping 34 per cent, according to the latest report by real estate data analytics firm PropEquity released on Sunday.
According to the data, housing sales in Q1 2025 stood at 1,05,791 units as compared to 1,36,702 units in the same period last year.
“Except Bengaluru and Delhi-NCR, all other 7 cities witnessed a decline in sales,” PropEquity said.
Housing supply also feel to 80,774 units in Q1 2025, compared with 1,22,365 units in the same period last year, marking three consecutive quarters of under-1 lakh units launched, it added.
“Except Bengaluru, all other 8 cities saw a decline in new supply in the first quarter,” PropEquity said.
Samir Jasuja, founder & CEO, PropEquity said, “The housing market is witnessing some correction after three years (2021, 2022, 2023) of record supply because of which absorption/sales is also on a declining trend. Rise in home prices and caution on the part of investors due to geo-political developments and certain weaknesses in the Indian economy have resulted in drop in sales.”
He added that the market has displayed strong demand as is evident from the healthy absorption to supply ratio, which stood at 131 per cent in Q1 2025, 132 per cent in Q4 2024 and 127 per cent in Q3 2024.
In Bengaluru, housing sales increased by 10 per cent to 18,508 units in Q1 2025, with the city accounting for 17 per cent of the total sales, rising from 12 per cent in Q1 2024.
Delhi-NCR sales rose 10 per cent to 11,221 units in Q1 2025 with the city accounting for 11 per cent of the total sales, rising from 7 per cent in Q1 2024.
Hyderabad sales dropped the most (47 per cent), followed by Mumbai 36 per cent, Pune 33 per cent, Kolkata 28 per cent, Thane 27 per cent, Navi Mumbai 7 per cent, and Chennai 2 per cent.
Housing supply rose by 17 per cent in Bengaluru to 20,227 units in Q1 2025. The city accounted for 25 per cent of the total launches in Q1 2025, rising from 14 per cent in the same period last year.
It fell the most in Kolkata at 62 per cent followed by 50 per cent each in Mumbai and Thane, 48 per cent in Pune, 46 per cent in Chennai, 38 per cent in Hyderabad, 24 per cent in Navi Mumbai and 14 per cent in Delhi-NCR.
Ankur Jalan, CEO of Golden Growth Fund (a Category II real estate-focused AIF), said, “The housing demand continues to be strong despite some visible slowdown and demand shifts in the last couple of quarters. With a new government taking charge in Delhi, we have seen a rise in enquiries for redevelopment especially in Cat-A colonies of Delhi, whose potential is worth upwards of Rs 2 lakh crore, as demand for villas and floors soars and safer real estate investment avenues with high yields are being looked into by investors.”
Vijay Harsh Jha, founder and CEO of VS Realtors, said, “The decline in housing sales and supply over the past few quarters may be on account of over-exuberance seen in the past three years by developers cashing in on the pent up demand. Some correction may be on the cards this year as investors analyse their investments and homebuyers cautiously choose developers and projects that offer them value for money.”
