The Indian housing market has witnessed a significant slowdown, with sales in the country's top nine cities declining by 23 per cent in the first quarter (Q1) of 2025, while supply saw an even sharper fall of 34 per cent, revealed a report released by real estate data analytics firm PropEquity on Sunday.
Housing sales during the January-March period of 2025 stood at 1,05,791 units, compared to 1,36,702 units in the corresponding period last year.
Bengaluru and Delhi-NCR were the only two cities where sales remained steady, while the remaining seven cities experienced a slump.
New housing supply stood at 80,774 units in Q1 2025, marking the third consecutive quarter with fewer than one lakh units launched.
The figure represents a significant drop from 1,22,365 units recorded in Q1 2024.
Bengaluru was the sole exception, registering an increase in supply, while the other eight cities recorded declines.
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"The housing market is witnessing some correction after three years (2021-2023) of record supply, which has led to a declining trend in absorption and sales. Rising home prices, geopolitical uncertainties, and economic weaknesses have contributed to the slowdown. However, demand remains strong, as reflected in the healthy absorption-to-supply ratio of 131 per cent in Q1 2025," said Samir Jasuja, Founder and CEO of PropEquity.
Traditionally high-supply markets—Hyderabad, Pune, and Thane—continued to experience a downturn. These cities had recorded the highest supply among all tier-1 cities in 2022 and 2023 before hitting a low in 2024. In Q1 2025, the three cities collectively saw 28,227 fewer units launched compared to the previous year.
"The share of Hyderabad, Pune, and Thane in total housing launches dropped to 29 per cent in Q1 2025 from 37 per cent in the same period last year," Jasuja added.
Bengaluru was the only city to buck the trend, with new housing supply increasing by 17 per cent to 20,227 units in Q1 2025.
The city’s share of total launches also rose to 25 per cent from 14 per cent a year ago.
On the other hand, Kolkata witnessed the sharpest fall in new housing supply at 62 per cent, followed by Mumbai and Thane (50 per cent each), Pune (48 per cent), Chennai (46 per cent), Hyderabad (38 per cent), Navi Mumbai (24 per cent), and Delhi-NCR (14 per cent).
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