Recent data released by PropEquity reveals that housing sales in the first quarter of 2025 will fall by a minimum of 23% across nine major cities in India. This decline is due primarily to elevated property prices, weak demand and growing geopolitical uncertainty, which have led investors to become more cautious.
Market Overview
As per the PropEquity report, the housing sales are anticipated to reduce to around 1,05,791 in Q1 2025, down from 1,36,702 units (Q1 2024). This overall drop is made worse with a 34% drop in housing supply; only 80,774 units were launched in Q1 2025 compared to 1,22,365 units in Q1 2024. Although there is pull back overall, Delhi-NCR and Bengaluru are expected to see growth which indicates a divided market situation.
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Regional Insights
The PropEquity report provides detailed data on nine major cities. Here’s a snapshot of the city-specific trends:
City-Specific Trends for Housing Sales in Q1 2025
|
City |
Expected Change in Sales |
Additional Details |
|
Delhi-NCR |
+10% |
Sales rose from 10,235 units to 11,221 units |
|
Bengaluru |
+10% |
Sales projected to reach 18,508 units |
|
Hyderabad |
-47% |
A sharp decline in sales |
|
Mumbai |
-36% |
A significant drop in sales |
|
Pune |
-33% |
Sales expected to decline |
|
Kolkata |
-28% |
Projected drop in sales |
|
Thane |
-27% |
Likely to see a decrease |
|
Navi Mumbai |
-7% |
Modest decline in sales |
|
Chennai |
-2% |
Minor decline in sales |
State-wise Data Snapshot
|
State |
City |
Expected Change in Sales |
|
Maharashtra |
Mumbai |
-36% |
|
Navi Mumbai |
-7% |
|
|
Thane |
-27% |
|
|
Pune |
-33% |
|
|
Delhi-NCR |
Delhi-NCR |
+10% (Sales reaching 11,221 units) |
|
Karnataka |
Bengaluru |
+10% (Sales reaching 18,508 units) |
|
Telangana/Andhra Pradesh |
Hyderabad |
-47% |
|
Tamil Nadu |
Chennai |
-2% |
|
West Bengal |
Kolkata |
-28% |
Key Factors Behind the Decline
Several factors are driving the anticipated drop in Housing sales in Q1 2025:
- High Property Prices: The persistent rise in home prices is discouraging buyers, particularly first-time investors.
- Geopolitical Uncertainty: Global geopolitical tensions have increased market risk, prompting investors to adopt a more cautious approach.
- Market Correction: After years of record supply, the market is experiencing a natural correction, which has led to a significant drop in both sales and new property launches.
- Investor Caution: Overall economic weaknesses and uncertainties have further dampened buyer enthusiasm.
Conclusion
The anticipated 23% drop in Housing sales in Q1 2025 shows the challenges faced by the real estate market due to increased property prices and global uncertainties. Certain areas, however, demonstrate a different story, with cities like Delhi-NCR and Bengaluru continuing to show demand. This transition for homebuyers and/or investors may provide opportunity for negotiation or better final property values post stabilization in the market.
It is important to stay up to date with these changes and to understand the regional picture of the changing real estate market. Stakeholders will be best prepared for the changing and dynamic real estate markets in understanding the detailed numbers and state-specific information previously mentioned above.
Also Read: Income Tax Changes for Homebuyers Take Effect on April 1
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Ans 1. Housing sales are expected to drop by at least 23% compared to Q1 2024, reflecting a significant market slowdown.
Ans 2. Delhi-NCR and Bengaluru are projected to experience growth in housing sales, even as other cities face a downturn.
Ans 3. High property prices, reduced housing supply, geopolitical uncertainties, and a natural market correction are the key drivers.
Ans 4. Elevated prices are discouraging especially first-time investors, limiting buyer participation and contributing to lower sales.
Ans 5. Global tensions and market risks are prompting investors to become more cautious, leading to a pullback in property investments.
Ans 6. A 34% drop in new property launches has exacerbated the situation, limiting choices for buyers and affecting overall market momentum.
Ans 7. While strong infrastructure in cities like Delhi-NCR and Bengaluru supports growth, other regions face challenges balancing supply and demand.
Ans 8. Yes, a modest correction might offer buying opportunities with lower entry prices and potential long-term gains as the market stabilizes.
Ans 9. Stay informed about regional trends, monitor economic indicators, and consider a balanced investment strategy focusing on growth areas.
Ans 10. Detailed data and regional breakdowns are available in the full PropEquity report, which provides further insights into market dynamics.