Skyrocketing property prices slow housing market’s bull run in Q1 2025

Skyrocketing residential prices coupled with geopolitical headwinds have slowed the Indian housing market’s bull run in the first quarter of calendar year 2025, according to real estate consultant Anarock.

The year's first quarter saw sales drop 28% across the top 7 cities against the same period in 2024, shows Anarock data. Around 93,280 units were sold in Q1 2025 in the top 7 cities, in sharp contrast to all-time high sales of over 1.30 lakh units in Q1 2024.

Delhi-NCR saw a 20% decline in sales from approximately 15,650 units in Q1 2024 to around 12,520 units in Q1 2025. Mumbai Metropolitan Region (MMR) saw the highest housing sales with about 31,610 units in Q1 2025, a decline of 26% over Q1 2024 when around 42,920 units were sold.

Bengaluru saw sales of 15,000 units sold in Q1 2025, a 16% decline compared with Q1 2024 when 17,790 units were sold. Hyderabad saw about 10,100 units sold in Q1 2025, a 49% decline over Q1 2024 when around 19,660 units were sold.

Pune saw 16,100 units sold in Q1 2025, decreasing by 30% over Q1 2024 when 22,990 units were sold. Chennai saw 4,050 units sold in Q1 2025 – a 26% decline over Q1 2024 when 5,510 units were sold. Kolkata also saw sales decline by 31% – from 5,650 units in Q1 2024 to 3,900 units in Q1 2025.

“Rising housing prices and global headwinds like ongoing geopolitical tensions and a weak global economy, has taken their toll on India's residential market activity. These factors cascaded down into the housing market in Q1 2025,” said Anuj Puri, chairman of ANAROCK Group.

MMR and Pune accounted for 51% of the total sales, with MMR seeing a 26% yearly drop and Pune a decline of over 30%. At 49%, Hyderabad saw the highest annual drop in sales, while Bengaluru had the lowest decline at 16%.

New launches across the top 7 cities remained above the one lakh mark but saw a 10% yearly decline.

“Notably, MMR and Bengaluru saw the maximum new supply in Q1 2025, accounting for 52% of the total new launches across the top 7 cities," said Puri. "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."

The total available inventory in the top 7 cities as of Q1 2025-end stands at 5.60 lakh units. Bengaluru saw its unsold stock rise by a significant 28% to 58,660 units by Q1 2025-end.

Average residential property prices across the top 7 cities saw a significant jump in the last one 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 overall strong demand. NCR and Bengaluru recorded the highest annual price jump of over 34% and 20%, respectively.