Residential Transactions Record 5% Dip in Home Sales to 5.45 Lakh Units: Year-Ender 2025

India’s housing market witnessed an important shift in 2025. While home sales volumes moderated, overall market value continued to grow. Residential transactions record a 5% year-on-year decline in registered home sales, falling to 5.45 lakh units from 5.77 lakh units in 2024, according to a Square Yards report.

However, this drop in volumes did not indicate weakness. Instead, it highlighted a transition towards a more value-driven housing market, where higher ticket sizes and sustained price appreciation offset lower transaction counts. The year marked a phase of maturity rather than a slowdown.

Residential Transactions Record a Volume Decline in 2025

The data shows that residential transactions record lower volumes across India’s nine key residential markets, including Mumbai, Thane, Navi Mumbai, Pune, Bengaluru, Hyderabad, Noida, Greater Noida, and Ghaziabad.

This moderation came after several years of strong post-pandemic recovery, during which pent-up demand, low interest rates, and lifestyle shifts had boosted housing sales. By 2025, affordability pressures and elevated prices began influencing buyer decisions, especially in premium and luxury segments.

Despite this, end-user demand remained intact, preventing a sharper correction in sales volumes.

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Sales Value Rises Despite Fewer Home Deals

While volumes declined, the total value of registered home sales rose sharply. In 2025, the total registered sales value increased by over 11% to ₹4.46 lakh crore, compared to ₹4.03 lakh crore in 2024.

This divergence was driven by a 22% rise in average deal sizes, with the average registered transaction value climbing to ₹0.81 crore, up from ₹0.70 crore a year earlier. The data clearly shows that residential transactions record fewer deals, but each transaction carried a higher value.

Sustained price appreciation over the past three to five years played a major role in this trend, especially in established urban markets.

Shift Towards Value-Led Growth in Housing Market

According to the report, 2025 marked a shift from volume-led expansion to value-led growth. Instead of chasing higher transaction numbers, the market focused on stable pricing, better-quality supply, and long-term demand fundamentals.

This trend reflects a maturing housing market where buyers are more discerning and developers are more disciplined with supply. As a result, residential transactions record stability in market value even as transaction volumes stabilise.

Such a shift is often seen as a sign of long-term health rather than weakness.

Premium Housing Shows Early Signs of Saturation

The report highlighted early signs of saturation in premium and luxury housing segments, particularly in mature markets like the Mumbai Metropolitan Region (MMR).

While premium housing remained structurally resilient, sustained price growth has begun to stretch affordability in select micro-markets. This led to cautious buying behaviour, contributing to the overall dip in volumes.

As residential transactions record this change, it signals that price-sensitive buyers are increasingly exploring alternatives in mid-priced segments and peripheral locations.

City-Wise Performance Highlights Market Segmentation

Mumbai and MMR Remain Market Leaders

Mumbai continued to dominate India’s housing market in both volumes and value. The city recorded 1.1 lakh registered transactions, translating into ₹1.6 lakh crore in sales value.

Within MMR, Thane and Navi Mumbai together contributed 2.1 lakh units worth ₹2.1 lakh crore, highlighting strong end-user demand in relatively affordable peripheral markets.

Pune and Hyderabad Show Stable Demand

Pune recorded around 0.8 lakh transactions with sales value of ₹0.5 lakh crore, while Hyderabad saw 0.7 lakh units worth ₹0.4 lakh crore.

These cities benefited from steady job creation, IT-led demand, and better affordability compared to Mumbai.

NCR Markets Show Mixed Trends

In the National Capital Region, Noida and Greater Noida stood out with 0.9 lakh registered transactions and ₹0.9 lakh crore in sales value. Ghaziabad recorded lower volumes at 0.1 lakh units, but higher average ticket sizes.

Southern markets like Bengaluru continued to see end-user participation, though registered values remained modest.

Overall, residential transactions exhibit clear segmentation across cities based on pricing, affordability, and access to infrastructure.

Why Mid-Segment Homes Are Gaining Importance

One of the most important takeaways from 2025 is the rising importance of the mid-segment housing category. Defined as homes priced between ₹80 lakh and ₹1.5 crore, this segment is emerging as the next growth driver.

As premium markets stabilise and affordability improves in the mid-income category, buyers are increasingly shifting focus to value-for-money homes. Developers are also aligning supply towards this segment, offering better layouts, amenities, and connectivity.

This explains why residential transactions record stronger traction in mid-market corridors across cities.

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What the 2025 Trends Mean for Homebuyers

For homebuyers, the 2025 trends offer clarity rather than concern. Stable prices, better product quality, and disciplined supply provide a healthier buying environment.

Those priced out of premium markets are finding viable options in mid-segment housing, especially in infrastructure-led peripheral corridors. With transaction volumes steady and price growth moderating, buyers can make more informed decisions.

2026 Outlook: Mid-Market Demand to Lead Housing Growth

Looking ahead, the report expects 2026 to be a year of equilibrium. Transaction volumes are likely to remain steady, average ticket sizes elevated, and price growth more evenly spread across segments.

As residential transactions record a gradual rebalancing of demand, the mid-segment is expected to drive incremental growth, supported by infrastructure expansion, stable interest rates, and improving affordability.

However, outcomes will depend on developer execution and timely project delivery.

Conclusion

The fact that residential transactions record a modest dip in volumes while market value rises reflects a more mature and balanced housing market. India’s residential real estate sector is no longer driven by speculative excess, but by real demand and long-term value.

As the market enters 2026, disciplined supply, informed buyers, and a strong mid-segment focus are likely to ensure steady and sustainable growth.