India’s residential real estate market entered a phase of measured normalisation in calendar year 2025, with housing demand softening gradually but remaining structurally resilient, according to Real Insight – Residential CY 2025, the annual housing market report released by PropTiger.com.
According to the report, across the top eight cities, all-India residential sales declined by 12% to 3,86,365 units in 2025 as compared to 4,36,992 units in 2024. This is the lowest annual sales since 2022.
In Q4 2025, sales contracted 10% YoY and 0.5% QoQ to 95,049 units. This is the lowest quarterly sales since Q2 2023 (80,250 units). During 2025, quarterly sales moderated from 98,095 units in Q1 2025 to 95,049 units in Q4 2025, reflecting demand re-timing rather than contraction.
Mr. Onkar Shetye, Executive Director of Aurum PropTech said, “2025 was not a year of demand destruction, but one of recalibration. Buyers remained active but more deliberate, while developers responded with disciplined supply management. This prevented inventory stress and helped prices remain resilient despite softer volumes.”
The slowdown was most pronounced in Q2 2025, which emerged as the weakest quarter in terms of new supply due to seasonal factors and heightened buyer caution. However, deferred demand was absorbed steadily in the second half of the year, particularly in southern markets.
| Total Sales (Units) | ||||||
| City | Q4 2024 | Q4 2025 | YoY Change | 2024 | 2025 | YoY Change |
| Mumbai | 33617 | 25617 | -24% | 143487 | 105595 | -26% |
| NCR | 9808 | 9222 | -6% | 41029 | 35711 | -13% |
| Bengaluru | 13236 | 13931 | 5% | 48272 | 54414 | 13% |
| Pune | 18240 | 13043 | -28% | 81281 | 59223 | -27% |
| Chennai | 4073 | 6973 | 71% | 16044 | 24892 | 55% |
| Hyderabad | 13179 | 14453 | 10% | 51337 | 54271 | 6% |
| Kolkata | 3715 | 3793 | 2% | 13605 | 15172 | 12% |
| Ahmedabad | 10170 | 8017 | -21% | 41937 | 37087 | -12% |
| Total | 106038 | 95049 | -10% | 436992 | 386365 | -12% |
City-level divergence widened throughout the year.
Hyderabad and Chennai emerged as consistent outperformers, recording sustained quarterly and year-on-year growth, while Mumbai and Bengaluru displayed volatility but closed the year on a firmer footing. Delhi NCR remained the only major market to record year-on-year sales declines across all four quarters, reflecting prolonged consolidation.
The total new supply across the eight cities fell 6% to 3,61,096 units in 2025 as against 3,85,221 units in 2024. This is the lowest annual supply since 2021.
In the October-December (Q4) 2025, supply rose 4% YoY and 0.2% QoQ to 92007 units.
| Total New Supply | ||||||
| City | Q4 2024 | Q4 2025 | YoY Change | 2024 | 2025 | YoY Change |
| Mumbai | 30127 | 24717 | -18% | 1,38,496 | 1,03,793 | -25% |
| NCR | 10048 | 10451 | 4% | 36,928 | 36,259 | -2% |
| Bengaluru | 15157 | 15567 | 3% | 51,693 | 58,368 | 13% |
| Pune | 13652 | 15469 | 13% | 74,454 | 61,756 | -17% |
| Chennai | 4005 | 5611 | 40% | 18,010 | 26,817 | 49% |
| Hyderabad | 9066 | 12578 | 39% | 39,072 | 46,012 | 18% |
| Kolkata | 3091 | 3043 | -2% | 6,845 | 12,248 | 79% |
| Ahmedabad | 3515 | 4571 | 30% | 19,723 | 15,843 | -20% |
| Total | 88661 | 92007 | 4% | 3,85,221 | 3,61,096 | -6% |
Despite moderated sales, residential prices continued to rise across key markets, supported by limited ready inventory, elevated construction costs, and calibrated new supply. Developers largely avoided aggressive discounting, reinforcing pricing discipline.
“The housing market is transitioning into a more mature, execution-led phase,” added Mr. Onkar Shetye. Growth in 2026 is likely to be driven by affordability, infrastructure-led micro-markets, and city-specific fundamentals rather than broad-based acceleration.”
