Housing sales in Q1 2025 set to drop 23% amid high prices and geopolitical uncertainty
Only Delhi-NCR and Bengaluru are expected to witness a rise in sales this quarter among nine major cities, said a PropEquity report
Housing sales across nine cities are projected to decline by at least 23%, with supply falling by 34% in the first quarter of 2025 (January to March). This decline is attributed to subdued demand, driven by high real estate prices and a cautious approach from investors amid ongoing geopolitical developments, according to a report by data analytics firm PropEquity.
Real estate data analytics firm PropEquity on March 23 released its housing sales data for January-March period. As per the data, housing sales are estimated to fall to 1,05,791 units in the first quarter of the 2025 calendar year from 1,36,702 units in the same period last year. Only Delhi-NCR and Bengaluru are expected to witness a rise in sales this quarter among nine major cities.
The report said housing supply was 80,774 units in Q1 2025, compared to 1,22,365 units in the same period last year. This marks three consecutive quarters of under 1 lakh units launched.
The report said that except for Bengaluru, all eight cities saw a decline in new supply in the first quarter.
The top 9 Indian cities include Mumbai, Navi Mumbai, Thane, Pune, Delhi NCR, Bengaluru, Chennai, Hyderabad and Kolkata.
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“The housing market is witnessing some correction after three years (2021, 2022, 2023) of record supply because of which absorption/sales is also on a declining trend. The 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% in Q1 2025, 132% in Q4 2024 and 127% in Q3 2024,” said Samir Jasuja, founder and CEO, PropEquity.
“The traditionally high supply markets - Hyderabad, Pune and Thane – continue to decline. These cities had the highest supply among all tier 1 cities for two years, running in 2022 and 2023, before touching a low in 2024. In this quarter, they cumulatively saw 28,227 units of lesser supply compared to last year. The share of the three cities to the total launches has come down from 29% in Q1 2025 as compared to 38% in the same period last year.”
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City-wise data on housing sales
Delhi NCR is also expected to see a 10% growth in sales to 11,221 units from 10,235 units.
According to the report, housing sales in Bengaluru are expected to increase by 10% to 18,508 units in Q1 2025. The city is likely to account for 17% of the total sales, rising from 12% in Q1 2024.
Delhi NCR's sales are expected to increase by 10% to 11,221 units in Q1 2025.
The report showed that Hyderabad is expected to witness a 47% reduction in sales, followed by Mumbai (36%), Pune (33%), Kolkata (28%), Thane (27%), Navi Mumbai (7%), and Chennai (2%).
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On the supply end, Bengaluru is expected to see a 17% increase to 20,227 in Q125. According to the report, supply is likely to fall by 62% in Kolkata, followed by 50% each in Mumbai and Thane, 48% in Pune, 46% in Chennai, 38% in Hyderabad, 24% in Navi Mumbai, and 14% in Delhi-NCR.
