India's residential real estate sector transitioned into a phase of normalization during 2025, with housing sales moderating from previously elevated levels while prices maintained their firm stance. This shift reflects a more disciplined and resilient market structure, according to insights from digital real estate transaction and advisory platform PropTiger.
Annual Sales Decline to Lowest Since 2022
Across the nation's top eight metropolitan cities, all-India residential sales witnessed a significant 12% year-on-year decline during 2025. The total sales volume dropped to 3,86,365 units from 4,36,992 units recorded in 2024, marking the lowest annual sales performance since 2022. This data was reported by ANI based on the comprehensive market analysis.
New residential supply also moderated substantially throughout the year, falling by 6% to reach 3,61,096 units compared to 3,85,221 units during the previous year. This represents the lowest level of new property launches witnessed since 2021, indicating a cautious approach from developers amid changing market dynamics.
Quarterly Performance Shows Consistent Slowdown
The market slowdown became evident at the quarterly level as well. During the October–December quarter of 2025, housing sales declined by 10% year-on-year and experienced a marginal 0.5% quarter-on-quarter decrease to 95,049 units. This performance represents the weakest quarterly showing since the April–June period of 2023.
Onkar Shetye, Executive Director at Aurum PropTech, provided crucial perspective on these market movements. "2025 was not a year of demand destruction, but rather one of recalibration. Buyers remained active in the market but became more deliberate in their decisions, while developers responded with disciplined supply management strategies. This careful balance prevented inventory stress and helped maintain price resilience despite softer transaction volumes," Shetye explained.
Divergent City Performances Emerge
City-wise analysis revealed widening performance divergence throughout the year. Hyderabad and Chennai emerged as consistent outperformers, supported by sustained quarterly and annual growth patterns. Chennai recorded a remarkable 55% surge in annual sales to reach 24,892 units, while Hyderabad posted a solid 6% increase to 54,271 units.
In stark contrast, Mumbai and Pune experienced steep annual declines of 26% and 27% respectively, highlighting regional market variations. Delhi-NCR remained the only major market to register year-on-year sales declines across all four quarters of 2025, indicating a prolonged phase of consolidation according to the report findings.
Supply Management and Price Dynamics
On the supply front, new residential launches across the eight cities showed a modest 4% year-on-year increase and a marginal 0.2% quarter-on-quarter rise during the December quarter, reaching 92,007 units. However, for the full calendar year, total supply additions decreased by 6% compared with 2024 levels, underscoring developers' cautious approach amid moderating demand conditions.
Despite lower transaction volumes throughout the year, residential prices continued their upward trajectory across key markets. Developers largely avoided aggressive discounting strategies and maintained pricing discipline, contributing to this price resilience according to the comprehensive market analysis.
Market Transition to Mature Phase
Shetye further elaborated on the market's evolving character. "The housing market is transitioning into a more mature, execution-led phase. Growth expectations for 2026 are likely to be driven by affordability considerations, infrastructure-led micro-markets, and city-specific fundamentals rather than broad-based market acceleration," he added, providing forward-looking insights.
This normalization phase represents a significant shift from the previously heated market conditions, suggesting a more sustainable growth trajectory for India's residential real estate sector. The combination of moderated sales, disciplined supply management, and resilient pricing indicates a market moving toward greater stability and maturity.
