The Indian residential real estate market is presenting a complex picture in the first quarter of 2025. According to the latest data from leading consultancy Anarock, housing sales across the top seven cities have witnessed a slight contraction. However, this dip in volume is accompanied by a significant rise in the average value of transactions, indicating a shift in market dynamics and buyer preferences.
A Market of Contrasts: Falling Volumes, Rising Values
Anarock's research reveals that approximately 1,20,340 units were sold in the first quarter (Q1) of 2025. This figure marks a 4% decline compared to the 1,25,190 units sold in the same period last year (Q1 2024). This cooling off in sales volume follows a period of exceptional activity in the previous year.
In a striking counter-trend, the financial commitment of homebuyers has increased substantially. The report highlights that the average flat ticket size has soared by 20% year-on-year. This surge pushes the average price of an apartment across these major markets to around Rs 6.55 crore. This significant jump is attributed to a combination of factors, including rising input costs, a shift in demand towards larger, well-amenitized homes, and the sustained premiumization of the market.
City-Wise Performance: Mumbai and Pune Lead in Sales
The sales trend was not uniform across all metropolitan hubs. Two cities in the western region defied the overall national decline and posted impressive growth.
Mumbai Metropolitan Region (MMR) emerged as the frontrunner, recording a 10% increase in sales, with about 38,500 units sold in Q1 2025. Pune followed closely with a 7% growth, clocking sales of approximately 21,315 units. These markets continue to demonstrate robust demand driven by strong economic fundamentals and ongoing infrastructure development.
On the other hand, other major cities experienced a drop in sales numbers:
- Hyderabad saw a sharp 24% decline.
- Kolkata witnessed an 18% fall.
- The National Capital Region (NCR) and Bengaluru each registered a 7% decrease.
- Chennai's sales dipped by a modest 2%.
New Launches and Future Market Trajectory
The supply side of the market also saw a reduction in activity. Data shows that new residential launches in Q1 2025 fell by 7% compared to the first quarter of the previous year. Around 1,11,725 new units were introduced across the top seven cities during this period.
Despite the current quarter's dip, Anarock Chairman, Anuj Puri, maintains an optimistic outlook for the full year. He attributes the Q1 sales correction to the exceptionally high base established in 2024, which was a record-breaking year for the sector. Puri suggests that the current trend represents a normalization rather than a downturn. He anticipates that overall sales for the entire calendar year 2025 are likely to remain stable or potentially show moderate growth, supported by sustained economic confidence and genuine homebuyer demand.
This market behavior underscores a maturation phase in India's housing sector. Buyers are becoming more discerning, often opting for quality and space over immediate investment returns, which is driving up the average ticket size even as the pace of transactions moderates.
