India’s residential property market showed clear signs of maturation in 2025, as transaction volumes softened while overall deal values continued to climb. Across nine key urban housing markets, registered home sales declined year-on-year, even as higher ticket sizes pushed total transaction value to a new high. The shift signals a move away from volume-driven growth towards a more value-conscious phase of urban housing demand.
Industry data indicates that residential transactions across major metros fell by about 5% during the year, settling at roughly 5.45 lakh units. Yet, the total value of these registrations rose more than 11% to approximately Rs 4.46 lakh crore, underlining sustained price appreciation across cities. Analysts attribute this divergence to rising average deal sizes, which grew by more than a fifth compared to the previous year. According to market observers, this pattern reflects the cumulative effect of price growth over the past several years rather than a sudden spike in speculative activity. “Buyers today are transacting fewer homes, but paying significantly more per unit,” an industry expert noted, adding that households appear more selective, prioritising location quality, infrastructure access and long-term liveability. Mumbai continued to anchor the market in both scale and value, accounting for the highest number of registered deals and the largest share of transaction value. Peripheral yet well-connected zones such as Thane and Navi Mumbai also recorded strong activity, highlighting the role of transport-led urban expansion in absorbing demand. In western India, Pune sustained steady end-user participation, while Hyderabad and Bengaluru remained resilient, supported by employment growth and technology-driven migration.
The National Capital Region displayed sharper segmentation. While Noida and Greater Noida posted healthy transaction volumes, Ghaziabad recorded fewer deals with comparatively higher average values, pointing to selective buyer interest rather than broad-based demand. Housing analysts suggest that premium and luxury segments in mature micro-markets are beginning to show early signs of saturation, as affordability pressures intensify. At the same time, mid-priced housing is emerging as the market’s stabilising force. Homes priced between Rs 80 lakh and Rs 1.5 crore are increasingly attracting salaried buyers seeking long-term security rather than speculative gains. Looking ahead, the Indian housing market is expected to enter a phase of equilibrium in 2026. Industry experts believe transaction volumes will remain stable, while price growth becomes more evenly distributed across segments. Developers are likely to focus on execution quality, energy-efficient construction and better community planning as buyers grow more discerning.
For India’s cities, this transition presents an opportunity to align housing supply with sustainable urban growth. A steady shift towards mid-income housing, supported by infrastructure investment and responsible density planning, could help cities grow in a more inclusive, climate-conscious and balanced manner.
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India Residential Home Sales Dip Five Percent To 5.45 Lakh Units 2025
