Around 5.77 lakh units remain unsold across the top six cities
Mumbai, Dec 26 (The CONNECT) – India’s residential real estate market lost momentum in 2025 as hardening property prices, layoffs in the IT sector, geopolitical tensions and broader economic uncertainties weighed on buyer sentiment.
Data from ANAROCK Research shows that housing sales across the top seven cities fell 14 per cent during the year, with around 3,95,625 units sold compared to 4,59,645 units in 2024.
Despite the drop in volumes, the total value of homes sold continued to rise. Overall sales value increased by six per cent year-on-year, climbing from about ₹5.68 lakh crore in 2024 to over ₹6 lakh crore in 2025, reflecting sustained price strength and a growing share of higher-ticket homes.
The Mumbai Metropolitan Region recorded the highest sales, with approximately 1,27,875 units sold during the year, though this marked an 18 per cent decline from 2024 levels. Pune followed with around 65,135 units sold, down 20 per cent year-on-year. Together, the two western markets accounted for nearly half of all residential sales across the top seven cities in 2025.
New housing supply remained largely stable. Launches across the top seven cities rose marginally by two per cent, increasing from about 4,12,520 units in 2024 to nearly 4,19,170 units in 2025. MMR and Bengaluru led new additions, together contributing close to 48 per cent of the fresh supply during the year.
“2025 has been a year of broad-spectrum upheaval, marked by geopolitical turmoil, IT-sector layoffs, tariff tensions and other uncertainties,” said Anuj Puri, Chairman of the ANAROCK Group. “Sales volumes largely stabilised at around four lakh units across the top seven cities, but overall sales value continued to grow. Our data shows that more than 21 per cent of new supply was launched in the above ₹2.5 crore price bracket.”
Puri noted that price growth also moderated during the year. “Average residential price appreciation has tapered from double digits in previous years to single digits in 2025. Prices across the top seven cities rose by an average of eight per cent, with only NCR recording double-digit growth at 23 per cent, driven largely by a higher proportion of premium and luxury launches.” Of NCR’s total new supply of around 61,775 units in 2025, more than 55 per cent was priced above ₹2.5 crore.
Looking ahead, Puri said the sector’s performance in 2026 would depend heavily on monetary policy and developer pricing discipline. “Rate cuts by the RBI and tighter control on price escalation by developers will be key. With the current economic outlook remaining favourable, further reductions in repo rates and home loan interest costs could significantly revive demand.”
The shift towards premium housing remained evident during the year. Both demand for and supply of luxury homes increased in 2025, continuing the post-pandemic preference for larger, better-quality homes developed by branded players. Homes priced above ₹2.5 crore accounted for 21 per cent of new supply across the top seven cities, up from 18 per cent in 2024, a trend that is expected to persist into 2026.
City-wise, five markets—MMR, Pune, Bengaluru, Hyderabad and NCR—together contributed 90 per cent of total housing sales in 2025. MMR led with around 1,27,875 units sold, followed by Pune at 65,135 units and Bengaluru at 62,205 units, the latter seeing only a modest five per cent decline. NCR recorded sales of about 57,220 units, down eight per cent year-on-year, while Hyderabad saw a sharper 23 per cent drop to approximately 44,885 units. Kolkata registered sales of around 16,125 units, a decline of 12 per cent. Chennai stood out as the only city to record growth, with sales rising 15 per cent to about 22,180 units.
On the supply side, MMR added the largest number of new units at around 1,26,140 in 2025, though this was six per cent lower than the previous year, with over 72 per cent of launches priced below ₹1.5 crore. Bengaluru launched approximately 74,260 units, a five per cent increase, with nearly four-fifths of supply in the ₹75 lakh to ₹2.5 crore range. Pune added about 67,955 units, up 12 per cent year-on-year, largely in the sub-₹1.5 crore category.
NCR saw a 14 per cent rise in new launches to around 61,775 units, with luxury and ultra-luxury homes dominating supply. Hyderabad added about 43,260 units, down 26 per cent from 2024, while Chennai and Kolkata recorded sharp increases of 30 per cent and 31 per cent respectively, though most of their new supply remained in the mid and affordable segments.
Housing prices continued to edge up, though at a slower pace. Average prices across the top seven cities rose eight per cent annually, from around ₹8,590 per sq ft at the end of 2024 to about ₹9,260 per sq ft by the end of 2025. Delhi-NCR saw the steepest increase, with prices rising 23 per cent to roughly ₹9,300 per sq ft. Other major cities recorded single-digit appreciation of between four and nine per cent, significantly lower than the 13–27 per cent growth seen in 2024.
Unsold inventory increased marginally by four per cent by the end of 2025, reflecting softer demand and steady new supply. Around 5.77 lakh units remain unsold across the top seven cities. Hyderabad was an exception, recording a two per cent decline in unsold stock due to restrained new launches, while MMR also saw a marginal one per cent reduction. All other cities reported higher unsold inventory levels, with Bengaluru posting the sharpest increase at 23 per cent.
