India’s residential real estate market saw a slowdown in 2025, as housing sales across the top eight cities declined by 12 percent compared to the previous year. Around 3.86 lakh homes were sold during the year, down from nearly 4.37 lakh units in 2024. The data points to a cooling of demand after several years of strong growth.
The decline was mainly visible in major northern and western markets such as the Mumbai Metropolitan Region, Delhi-NCR, Pune and Ahmedabad. These cities recorded slower sales due to higher property prices, fewer new project launches, and cautious buyer sentiment. Developers also remained selective, focusing on completing existing projects rather than adding fresh supply.
In contrast, southern cities continued to perform well despite the broader slowdown. Bengaluru, Hyderabad and Chennai emerged as the strongest residential markets in 2025. Together, these cities recorded a combined growth of around 15 percent in housing sales and accounted for more than 1.33 lakh residential transactions during the year.
Bengaluru remained one of the most active housing markets in the country. Demand was supported by steady employment, especially in the technology sector, and a healthy supply of mid-income and premium homes. Chennai reported the highest year-on-year growth among major cities, driven by improved market sentiment and an increase in project activity. Hyderabad also maintained positive momentum, registering moderate growth despite overall market pressure.
New housing supply across the top cities declined during the year. Overall project launches fell by around 6 percent in 2025, marking the lowest annual supply level since 2021. Developers adopted a cautious approach, aligning new launches closely with demand conditions. Limited supply helped maintain price stability across most markets, even as sales volumes softened.
Overall, the housing market in 2025 reflected a mixed performance across regions. While several major cities experienced slower sales, southern markets continued to show resilience. Industry observers note that local demand drivers, employment growth, and infrastructure development will remain key factors shaping residential sales in the coming year.
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Yash Paul is a real estate journalist and researcher based in Bangalore. He tracks emerging property hotspots and major developer announcements. Yash is dedicated to providing transparent, factual reporting on the region's rapidly evolving housing and commercial landscape.
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