28% Housing Sales fall in Q12025, Pune reports the Biggest Loss!

The first quarter of 2025 saw a notable downturn in the Indian housing industry, with sales in the top seven cities falling by 28% from the same period in 2024. Rising prices and uncertainty in the global economy are to blame for this fall, according to real estate firm Anarock.

In Q1 2025, 93,280 units were sold, according to the data, which is a sharp contrast to the 130,170 units sold in the same period in 2024. Bengaluru, Pune, Hyderabad, Chennai, Kolkata, the National Capital Region (NCR), and the Mumbai Metropolitan Region (MMR) were among the cities that were analyzed.

In Q1 2025, average residential property prices in these seven cities increased significantly, ranging from 10% to 34%, notwithstanding the drop in sales. New products in the premium and ultra-luxury markets, along with ongoing demand, were the main drivers of this increase. Notably, the biggest annual price increases occurred in Bengaluru and the National Capital Region (NCR), surpassing 34% and 20%, respectively.

Even while the number of new properties launched in the seven cities exceeded 100,000, there was nevertheless a 10% yearly drop, from about 1,10,865 units in Q1 2024 to around 1,00,020 units in Q1 2025.

Cities saw a range of trends in the new housing supply.  Significant rises of 53%, 27%, and 26% were seen in the NCR, Bengaluru, and Kolkata, respectively. Hyderabad, on the other hand, saw the biggest drop in new supply, falling by 55%.  MMR experienced a 9% decline as well.

The total amount of unsold inventory decreased somewhat, falling by 4% from roughly 580,890 units in Q1 2024 to 559,810 units in Q1 2025.  With a 16% decrease, Pune saw the biggest loss in stock availability. Nonetheless, unsold inventory in Bengaluru increased significantly, going up by 28% to over 58,660 units.

 “MMR and Pune together accounted for 51 per cent of the total sales, with MMR recording a 26 per cent drop compared to the previous year, while Pune saw a sharper decline of over 30 per cent. Hyderabad witnessed the highest annual fall in sales at 49 per cent, whereas Bengaluru had the smallest decrease at 16 per cent,” stated a real estate expert.

“Notably, MMR and Bengaluru saw the highest number of new launches in Q1 2025, contributing 52 per cent of the total supply across the top seven cities,” the expert added.

“However, increasing housing prices, combined with global challenges like ongoing geopolitical tensions and a weak global economy, have weighed heavily on India’s residential market. These factors carried over into the housing sector in Q1 2025,” said the expert.