Bengaluru, Delhi buck the trend as housing sales dip in India's 7 of top 9 cities in Jan-March

Housing sale in India’s top nine cities continued its downward trend, falling by 23% while supply declining by 34% in Jan-March of 2025, as buyers stayed away from real estate among share market fall.

According to NSE-listed data analytics firm PropEquity, Housing sales in Q1 2025 stood at 1,05,791 units as compared to 1,36,702 units in the same period last year.

In 2024, the sale saw a marginal 9% decline in sales at 4,70,899 units while new supply fell by 15% to 4,11,022 units on the back of two quarters of under-activity due to General Elections and monsoon.

Except 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.

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

“The housing market is witnessing some correction after three years (2021, 2022, 2023) of record supplybecause of which absorption/sales is also on a declining trend. 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 drop in sales,” said Samir Jasuja, founder & CEO, PropEquity.

However, the market has displayed strong demand as is evident from the healthy absorption to supply ratio, which stood at 131% in Q1 2025, 132% in Q4 2024 and 127% in Q3 2024.

“The traditionally high supply markets - Hyderabad, Pune and Thane – continue to decline. These cities had the highest supply among all tier 1 cities for 2 years running 2022 and 2023 before touching a low in 2024,” Jasuja said.

In this quarter, they cumulatively saw 28,227 units of lesser supply as compared to the same period last year. In fact, the share of the three cities to the total launches has come down from to 29% in Q1 2025 as compared to 38% in the same period last year.