India’s residential real estate market entered a phase of measured normalisation in calendar year 2025, with housing demand moderating gradually while prices remained 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, marking the lowest annual sales volume since 2022.
In the fourth quarter of 2025 (Q4 2025), housing sales fell 10% year-on-year and 0.5% quarter-on-quarter to 95,049 units—the lowest quarterly sales recorded since Q2 2023. Quarterly sales during 2025 moderated steadily from 98,095 units in Q1 to 95,049 units in Q4, indicating a re-timing of demand rather than a structural contraction.
Commenting on the trend, Mr. Onkar Shetye, Executive Director, 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 during Q2 2025, which emerged as the weakest quarter for new supply due to seasonal factors and heightened buyer caution. However, deferred demand was steadily absorbed in the second half of the year, particularly across southern markets.
City-wise Performance Highlights
City-level divergence widened through the year. Hyderabad and Chennai emerged as consistent outperformers, registering sustained quarterly and annual growth. Mumbai and Bengaluru showed volatility during the year but closed 2025 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.
Supply Trends
Total new housing supply across the eight cities declined 6% year-on-year to 3,61,096 units in 2025, compared to 3,85,221 units in 2024 the lowest annual supply recorded since 2021.
In Q4 2025, however, new launches rose 4% year-on-year and 0.2% quarter-on-quarter to 92,007 units, signalling cautious supply reactivation by developers.
Despite moderated sales volumes, residential prices continued to firm up across key markets. Limited ready inventory, elevated construction costs, and calibrated supply additions enabled developers to maintain pricing discipline, with minimal reliance on aggressive discounting.
“The housing market is transitioning into a more mature, execution-led phase,” added Mr. Shetye. “Growth in 2026 is likely to be driven by affordability, infrastructure-led micro-markets, and city-specific fundamentals rather than broad-based acceleration.”