Housing Sales Drop 23%, Supply Falls 34% in India's Top Cities Q1 2025

The housing market in India's top nine cities is experiencing a significant downturn, with sales dropping by 23% to 105,791 units in Q1 2025 compared to the previous year. This decline is accompanied by a 34% reduction in housing supply, totalling 80,774 units, marking three consecutive quarters of under one lakh units launched. Notably, only Bengaluru and Delhi-NCR saw sales increases of 10%, while other major cities like Hyderabad and Mumbai faced steep declines of 47% and 36%, respectively. According to Samir Jasuja, CEO of PropEquity, the market correction follows three years of record supply, influenced by rising home prices and investor caution due to geopolitical and economic concerns. Despite the downturn, the market shows a strong absorption to supply ratio of 131%, indicating healthy demand in certain areas. The report highlights the ongoing challenges in the housing sector, particularly in traditionally high-supply markets like Hyderabad, Pune, and Thane, which have seen substantial supply decreases.