Housing Sales in India’s Top 9 Cities Fall 16% in Q4 2025 as Supply Drops 10%

Housing sales in India witnessed a notable slowdown in the final quarter of 2025, breaking the momentum seen over the past three years. According to data released by real estate analytics firm PropEquity, housing sales in India’s top nine cities declined 16% year-on-year (YoY) in Q4 2025 to 98,019 units, marking the weakest quarterly performance since Q3 2021.

This decline comes at a time when the October–December period traditionally benefits from festive-driven demand and heightened buyer activity. Instead, Q4 2025 reflected a market recalibration, where rising ticket sizes, selective buying, and cautious launch strategies weighed on transaction volumes. Alongside weaker sales, housing supply also contracted 10% YoY, reinforcing the trend of consolidation rather than expansion.

Housing Sales in India Slide to a Four-Year Quarterly Low

In absolute terms, housing sales in India fell sharply from year-ago levels, underscoring the scale of the slowdown. The 98,019 units sold during Q4 2025 represent the lowest quarterly sales recorded in over four years, reversing the steady recovery seen post-pandemic.

This moderation was not driven by a collapse in demand but rather by a structural shift in buyer preferences. With developers increasingly focused on premium and mid-to-high-end projects, affordability constraints and higher average prices limited mass-market absorption. As a result, housing sales in India softened despite stable macroeconomic conditions and easing interest rates.

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City-Wise Housing Sales Performance in Q4 2025

Except for two markets, sales declined across all major cities, with some regions witnessing corrections of up to 31%.

City-Wise Housing Sales (YoY Change – Q4 2025)

Navi Mumbai and Delhi NCR stood out as the only two markets to record YoY growth, supported by infrastructure-led demand, improved connectivity, and steady end-user interest. In contrast, traditionally strong markets such as Bengaluru, Hyderabad, and Pune saw double-digit declines, reflecting cautious buyer sentiment amid rising price points.

Festive Season Fails to Revive Housing Sales in India

Historically, the festive quarter contributes significantly to annual residential sales, driven by promotional offers, new launches, and improved consumer sentiment. However, Q4 2025 broke this pattern.

According to PropEquity, the decline indicates that housing sales in India are no longer driven by seasonal factors alone. Instead, buyers are taking longer decision cycles, prioritising location quality, project readiness, and long-term affordability over festive incentives. This shift marks a maturation of the residential market, where demand is more selective and value-conscious.

Premiumisation Continues to Reshape Demand Dynamics

Despite falling volumes, the overall value of housing transactions remained resilient, reinforcing the ongoing premiumisation trend. Developers have increasingly focused on larger homes and higher-ticket projects, resulting in fewer units but higher aggregate value.

This trend was evident in launch data as well. While around 4.81 lakh units were launched in 2023 with a total value of ₹6.3 lakh crore, 2024 saw only 4.11 lakh units launched—nearly 70,000 fewer homes yet with a higher combined value of ₹6.8 lakh crore.

The data highlights how housing sales in India are shifting from volume-led growth to value-led expansion, even if it temporarily suppresses transaction numbers.

Housing Supply Falls 10% as Developers Turn Cautious

Alongside weaker sales, housing supply in India’s top nine cities declined 10% YoY in Q4 2025 to 88,427 units. On a quarter-on-quarter basis, supply dropped 4%, reflecting cautious launch strategies adopted by developers.

City-Wise Housing Supply Trend (YoY – Q4 2025)

Only Delhi NCR, Navi Mumbai, and Chennai recorded growth in new supply, while all other cities saw notable declines. This reflects developers’ preference for inventory absorption over aggressive expansion, especially in markets with elevated unsold stock.

Why Developers Are Holding Back on New Launches

The contraction in supply is not indicative of stress but rather of strategic restraint. Developers are increasingly aligning launches with visible demand rather than speculative growth. Rising construction costs, land prices, and a focus on balance-sheet discipline have reinforced this cautious approach.

For housing sales in India, this measured supply pipeline could prove beneficial in the medium term, preventing inventory overhangs and supporting price stability.

Interest Rates, Affordability, and Buyer Behaviour

While the Reserve Bank of India has reduced the repo rate by a cumulative 125 basis points since early 2025, the full benefit has yet to be reflected in lower home loan EMIs. The lag in transmission has limited immediate affordability gains, particularly in premium-heavy markets.

At the same time, buyers are gravitating toward ready-to-move-in and near-completion projects, further impacting sales velocity in under-construction segments. These behavioural shifts continue to influence housing sales in India, especially in larger metro markets.

Why NCR and Navi Mumbai Defied the Trend

Delhi NCR and Navi Mumbai emerged as relative outperformers due to strong infrastructure visibility and diversified demand. NCR benefited from sustained activity in the premium and upper-mid segments, while Navi Mumbai continued to attract buyers ahead of major connectivity upgrades and commercial development.

These markets demonstrate how infrastructure-led confidence can cushion housing sales in India even during broader slowdowns.

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Outlook for 2026: Recovery Supported by a Low Base

Looking ahead, market sentiment remains cautiously optimistic. According to PropEquity, the low base of 2025, combined with significant capital raised by developers during the year, is expected to translate into increased launches in 2026.

Improved transmission of interest rate cuts and continued government support for housing and infrastructure could further stabilise housing sales in India. While volume growth may remain measured, the sector is unlikely to witness any sharp correction.

Conclusion

The Q4 2025 slowdown reflects a period of consolidation rather than a structural decline. Housing sales in India are transitioning to a more mature phase, characterized by premiumization, cautious supply, and discerning buyers.

As affordability improves and supply pipelines reopen in select markets, the residential sector is well-positioned for a gradual and sustainable recovery in 2026, reinforcing India’s long-term housing demand fundamentals.