India's housing sales fall 14% in 2025, but rising luxury demand lifts total sales value past ₹6 lakh cr

Hardening property prices, layoffs in the IT sector, geopolitical tensions and other uncertainties dented India's residential growth momentum in 2025 as housing sales in the top seven cities saw a 14% decline in 2025, with around 3,95,625 units sold in the year against 4,59,645 units in 2024, according to a report by ANAROCK Research. However, the overall sales value of housing units saw a 6% yearly jump, from around Rs 5.68 lakh crore in 2024 to over Rs 6 lakh crore in 2025. 

Region-wise, only Chennai was able to register sales growth of 15%, while rest of the markets had a negative sales growth. MMR saw the highest sales of around 1,27,875 units, registering an 18% yearly decline. Pune followed with around 65,135 units sold, declining by 20% YoY. The two western markets together led residential sales in 2025, comprising a 49% overall share. 

New launches in the top 7 cities saw a 2% annual increase – from around 4,12,520 units in 2024 to around 4,19,170 units in 2025. MMR and Bengaluru saw the maximum new launches, together accounting for an almost 48% of the new supply in the year.  

“2025 has been a year of broad-spectrum upheaval including geopolitical turmoil, layoffs in the IT sector, tariff tensions and other uncertainties,” says Anuj Puri, Chairman – ANAROCK Group. “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 INR 2.5 Cr price bracket.” 

“Interestingly, the average residential price growth rate has tapered down from double digits in previous years to single digits in 2025,” adds Puri. “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 INR 2.5 Cr.” 

“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 favourableeconomic outlook, further repo rate cuts leading to lower home loan interest rates can cause demand to revive significantly,” he says.

Among budget categories, both the demand for and supply of luxury housing rose in 2025 – the post-pandemic trend toward bigger, better homes by branded developers continues. The share of new supply of homes priced Rs 2.5 crore in the top 7 cities was a significant 21% in 2025, against 18% in 2024. There is every reason to expect this trend to endure in 2026, as well.