India’s residential real estate market entered a phase of measured normalisation in calendar year 2025, with housing demand moderating but remaining structurally resilient, according to Real Insight – Residential CY 2025, the annual housing market report released by PropTiger.com.
Across the top eight cities, all-India residential sales declined 12% year-on-year to 3,86,365 units in 2025, compared to 4,36,992 units in 2024. This marked the lowest annual sales volume since 2022, reflecting a phase of demand recalibration rather than a structural slowdown.
Quarterly Trends Highlight Demand Re-Timing
In the October–December quarter (Q4 2025), housing sales fell 10% year-on-year and 0.5% quarter-on-quarter to 95,049 units, making it the weakest quarterly performance since Q2 2023. Sales gradually moderated from 98,095 units in Q1 2025 to Q4 levels, indicating delayed purchase decisions rather than a collapse in buyer interest.
Commenting on the trend, Onkar Shetye, Executive Director, Aurum PropTech, said that 2025 was a year of recalibration. Buyers remained active but more deliberate, while developers adopted disciplined supply strategies. This balance helped prevent inventory stress and supported price stability despite softer transaction volumes.
City-Level Performance Shows Divergence
Housing market performance varied sharply across cities. Hyderabad and Chennai emerged as consistent outperformers, registering strong quarterly and annual growth. Bengaluru closed the year on a firmer footing after mid-year volatility, while Mumbai witnessed sharper corrections before stabilising. Delhi NCR remained the only major market to record year-on-year sales declines across all four quarters, reflecting an extended phase of consolidation.
New Supply Falls to Multi-Year Lows
New residential supply across the eight cities declined 6% year-on-year to 3,61,096 units in 2025, the lowest annual supply since 2021. Developers adopted a cautious launch strategy, aligning new supply closely with demand conditions.
In Q4 2025, however, new supply rose 4% year-on-year and 0.2% quarter-on-quarter to 92,007 units, suggesting selective revival in launch activity, particularly in southern markets and infrastructure-led micro-markets.
Prices Remain Resilient Despite Lower Volumes
Despite moderation in sales, residential prices continued to rise across key markets. Limited ready inventory, elevated construction costs and calibrated supply prevented aggressive discounting. Developers maintained pricing discipline, reinforcing the market’s transition toward a more mature, execution-driven phase.
According to PropTiger, growth in 2026 is likely to be driven by affordability improvements, infrastructure-led corridors and city-specific fundamentals, rather than broad-based acceleration. The report indicates that India’s housing market is increasingly characterised by stability, discipline and long-term resilience.
