Housing Sales Likely To Tank 23 Per Cent In Jan-March, Bengaluru, Delhi NCR Only Exceptions

The Indian housing market experienced a notable downturn in the first quarter of 2025. PropEquity estimated that sales during the January-March period declined 23 per cent annually and hit almost 1.06 lakh units.

The real estate analytics firm said that this decline in demand could be attributed to high prices and economic uncertainties, reported PTI. The data, released by the firm on Sunday, showed the estimates for housing sales in the first quarter of 2025 across nine major cities.

Notably, housing sales touched 1,36,702 units in the corresponding period a year earlier. Meanwhile, it is estimated that 1,05,791 units would be sold in the quarter.

Among the nine cities analysed, only Delhi-NCR and Bengaluru are expected to see a rise in sales.

Market Correction and Reduced Demand

Samir Jasuja, Founder & CEO of PropEquity, highlighted that the market is going through a correction phase following three years of record supply. “The housing market is witnessing some correction after three years of record supply because of which absorption/sales is also on a declining trend,” he stated.

Alongside declining sales, new housing supply is also projected to see a sharp fall and decline by 34 per cent to 80,774 units in the first quarter of 2025 compared to 1,22,365 units in the same period last year.

Higher home prices, geopolitical uncertainties weighing down on consumers’ confidence, and weaknesses in the Indian economy have contributed to this trend, Jasuja added.

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City-Wise Housing Sales Performance

While most cities are estimated to report a downturn, Bengaluru and Delhi-NCR are anticipated to break away from the trend with a 10 per cent increase in housing sales.

Bengaluru is expected to clock sales of 18,508 units in January-March 2025, up from 16,768 units a year ago. Similarly, Delhi-NCR might see sales rise to 11,221 units from 10,235 units reported in the same period last year.

Conversely, several cities are likely to report significant declines, the data said. Chennai is expected to experience a 2 per cent drop, with sales slipping to 4,858 units from 4,962 units, while Hyderabad could see a steep 47 per cent fall, with transactions decreasing from 20,835 units to 11,114 units on a year-on-year (YoY) basis. In Kolkata, housing sales are likely to plunge 28 per cent to 4,219 units from 5,882 units from a year ago period.

Mumbai is anticipated to report a 36 per cent drop in housing sales, with numbers falling to 10,432 units from 16,204 units, while Navi Mumbai might see a 7 per cent decline, with sales decreasing from 9,218 units to 8,551 units.

Pune could see a 33 per cent reduction, with sales declining from 26,364 units to 17,634 units. In Thane, housing sales are likely to plummet 27 per cent to 19,254 units from 26,234 units.

PropEquity, operated by NSE-listed P E Analytics Ltd, tracks over 1.7 lakh projects from more than 57,000 developers across 44 cities.