India’s urban housing market saw a notable slowdown in 2025, with home sales across the top seven cities falling 14 per cent year-on-year, even as the total value of transactions continued to rise. The divergence between volumes and value highlights a market adjusting to higher prices, economic uncertainty, and shifting buyer preferences, with implications for affordability and urban growth planning.
According to a recent industry report, around 3.95 lakh homes were sold in 2025 across the country’s largest residential markets, compared with 4.59 lakh units a year earlier. Despite the decline in transactions, the cumulative value of homes sold rose by about 6 per cent to cross ₹6 lakh crore, underlining the impact of rising ticket sizes and a growing share of premium housing. The Mumbai Metropolitan Region remained the largest market by volume, recording nearly 1.28 lakh sales, though this marked an 18 per cent annual decline. Pune followed with over 65,000 units sold, down 20 per cent. Together, the two western markets accounted for almost half of all urban housing sales in 2025. Industry experts noted that price escalation and cautious buyer sentiment weighed heavily on demand in these traditionally high-performing regions. Southern markets presented a mixed picture. Bengaluru saw a modest 5 per cent drop in sales, reflecting relatively resilient end-user demand supported by diverse employment sectors. Hyderabad, however, experienced one of the sharpest corrections, with sales falling more than 20 per cent amid restrained new supply absorption. Chennai stood out as the only city to post growth, with sales rising 15 per cent, aided by stable pricing and steady local demand.
While fewer homes were sold, new project launches edged up slightly during the year, indicating continued developer confidence in long-term urban housing demand. Nearly four-fifths of new supply came from Mumbai, Pune, Bengaluru and the National Capital Region. A significant portion of this supply was concentrated in higher price brackets, reflecting a sustained tilt towards larger homes and branded developments. An industry observer said the market in 2025 was shaped by global geopolitical tensions, employment uncertainty in technology-driven sectors, and a maturing post-pandemic housing cycle. “Sales volumes have stabilised, but buyers are far more selective, and affordability has become central to decision-making,” the expert noted. Average residential prices across the seven cities rose by around 8 per cent during the year, though growth moderated compared to the sharp increases seen earlier. Unsold inventory increased marginally, signalling the need for better alignment between supply, pricing and genuine end-user demand.
Looking ahead, analysts suggest that interest rate movements, improved public transport connectivity, and more energy-efficient housing designs could help revive demand in 2026. As cities balance growth with sustainability, the challenge will be to deliver housing that remains accessible, inclusive and responsive to changing urban lifestyles.
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India Housing Sales Fall 14% In 2025 Mumbai Pune Hyderabad Hit Most
