India’s residential property market faced a slowdown in 2025 as a combination of hardening prices, IT sector layoffs, and geopolitical uncertainties dampened buyer sentiment across major cities, according to ANAROCK Research. Housing sales in the top seven cities declined by 14 per cent, with approximately 395,625 units sold in 2025 compared with 459,645 units in 2024.
Despite the drop in volumes, the total transaction value of homes increased by around 6 per cent year-on-year, rising from Rs 5.68 lakh crore in 2024 to over Rs 6 lakh crore in 2025. Analysts suggest this reflects a shift in buyer preference towards higher-value properties, as well as inflationary pressures on construction and land costs. Greater Mumbai remained the largest contributor to sales, though it recorded an 18 per cent decline with around 1,27,875 units sold. Pune followed with approximately 65,135 units, down 20 per cent from the previous year. Combined, these two western markets accounted for 49 per cent of residential sales across the top seven cities. New launches, however, showed resilience, rising marginally by 2 per cent from 412,520 units in 2024 to roughly 419,170 units in 2025. Greater Mumbai and Bengaluru led supply additions, together representing nearly 48 per cent of all new launches. “While sales volumes stabilised at around four lakh units, the growth in overall sales value indicates continued demand for premium and luxury segments,” said a senior real estate analyst.
Luxury housing saw notable traction, with over 21 per cent of new supply priced above Rs 2.5 crore, up from 18 per cent in 2024. NCR was the only region to experience double-digit price growth at 23 per cent, driven by a higher concentration of premium units. Across the top seven cities, residential prices grew at a single-digit rate of 8 per cent on average. The unsold inventory in major cities rose modestly by 4 per cent, reaching approximately 5.77 lakh units, reflecting slower absorption amid elevated prices. Bengaluru experienced the most significant increase in unsold stock at 23 per cent, while Hyderabad and Greater Mumbai saw slight reductions due to restricted new supply. Looking ahead to 2026, market experts indicate that interest rate movements by the RBI and price moderation by developers will be pivotal. Lower home loan rates could reinvigorate demand, particularly in mid- and high-end segments, while sustainability-oriented projects may attract discerning buyers in urban centres. Analysts anticipate that luxury housing demand will continue to grow, driven by post-pandemic preferences for larger, well-amenitised homes.
Overall, the top seven cities’ residential markets in 2025 presented a mixed picture: declining transaction volumes counterbalanced by rising sales value, signalling cautious optimism for 2026 provided macroeconomic stability and targeted policy support.
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Pune Housing Sales Fall Sharply Despite Higher Transaction Values In 2025
