India's real estate sector demonstrated resilience in the first quarter of 2025, with demand remaining stable despite a notable slowdown in new project launches, according to a report by Equirus. The report highlights that while launches dipped by around 20% compared to the previous quarter, buyer interest held steady, particularly in the affordable and mid-segment housing categories.
Key Findings from Equirus Report
The Equirus analysis indicates that the overall demand, measured by sales volumes, remained largely unchanged quarter-on-quarter. This stability is attributed to strong end-user demand in metropolitan areas and supportive government policies. The report also notes that inventory overhang has improved marginally, suggesting a healthy absorption rate.
Regional Performance
Among major cities, Mumbai, Pune, and Bengaluru led in sales, while Delhi-NCR saw a slight dip. Tier-2 cities like Ahmedabad and Lucknow exhibited robust growth, driven by infrastructure development and increased affordability.
Impact of Launch Slowdown
The reduction in new launches was primarily due to developers focusing on clearing existing inventory and cautiousness around input costs. However, the steady demand indicates that buyers are not deterred by limited new supply, possibly due to attractive deals on ready-to-move-in properties.
Outlook for 2025
Looking ahead, Equirus expects demand to remain stable, supported by favorable interest rates and urbanization trends. The second half of the year may see a pickup in launches as developers gain confidence. The affordable housing segment is likely to continue driving volumes, while luxury housing may see selective demand in key markets.
Overall, the Indian real estate market appears to be in a consolidation phase, with demand fundamentals remaining strong despite short-term supply constraints.
