Housing Sales Dip 23% In Q1 Amid Supply Correction In Top 9 Cities

The Indian real estate market witnessed a sharp decline in Q1 2025, with housing sales falling by 23% and new supply dropping 34% across the top 9 cities, according to a report by PropEquity. While Bengaluru and Delhi-NCR showed resilience, other cities, including Mumbai, Hyderabad, and Pune, saw steep declines

Mumbai: Housing market continued its downward trend with housing sales in India's top 9 cities falling by 23 per cent while supply declining by a whopping 34% in Jan-March of 2025, said a report by NSE-listed data analytics firm PropEquity.

Experts believe that it might have been caused by excessive supply created over the past couple of years.

Talking to Bizz Buzz, Vijay Harsh Jha, Founder and CEO, VS Realtors says, "The fall in supply and sales may be due to excessive supply created over the past couple of years."

Some correction may be on the cards this year as investors analyse their investments and homebuyers cautiously choose developers and projects that offer them value for money, he said.Housing sales in Q1 stood at 1,05,791 units compared to 1,36,702 units in the same period last year. Except for Bengaluru and Delhi-NCR, all 7 cities witnessed a decline in sales.

Housing supply, on the other hand, stood at 80,774 units in Q1 2025 as compared to 1,22,365 units in the same period last year, marking three consecutive quarters of under 1 lakh units launched.

Ankur Jalan, CEO of Golden Growth Fund (a Category II real estate-focused AIF) says, "The National Capital Delhi is witnessing a rise in inquiries for redevelopment especially in Cat-A colonies of Delhi, whose potential is worth upwards of Rs 2 lakh crore, as demand for villas and floors soars and safer real estate investment avenues with high yields are being looked into by investors."

Except for Bengaluru, all 8 cities saw a decline in new supply in the first quarter.

Samir Jasuja, Founder & CEO, PropEquity said that rise in home prices and caution on the part of investors due to geo-political developments and certain weaknesses in the Indian economy have resulted in a drop in sales. However, the market has displayed strong demand as is evident from the healthy absorption to supply ratio, which stood at 131 per cent in Q1 2025, 132 per cent in Q4 2024, and 127 per cent in Q3 2024.

Sales dropped the most in Hyderabad (47 per cent ), followed by Mumbai 36 per cent , Pune 33 per cent , Kolkata 28 per cent , Thane 27 per cent , Navi Mumbai 7 per cent and Chennai 2 per cent .