Whalesbook
India's Housing Market Sees Volume Drop, Value Surge in 2025
India's residential real estate market experienced a significant dip in sales volume in 2025, with the top seven cities recording a 14% decline. Approximately 3,95,625 housing units were sold during the year, down from 4,59,645 units in 2024, according to a report by ANAROCK Research. This downturn was influenced by factors such as hardening property prices, IT sector layoffs, and broader economic uncertainties.
Luxury Demand Drives Sales Value Upward
Despite the decrease in the number of units sold, the overall sales value of housing units saw a healthy 6% year-on-year jump. Total sales value rose from around ₹5.68 lakh crore in 2024 to over ₹6 lakh crore in 2025. This rise was predominantly driven by a sustained demand for luxury properties, with new launches in the above ₹2.5 crore price bracket accounting for over 21% of the new supply in 2025, an increase from 18% in the previous year.
Regional Performance Diverges
Regional performance varied significantly across the top cities. Only Chennai managed to register positive sales growth, with a 15% increase. In contrast, other major markets experienced negative sales growth. The Mumbai Metropolitan Region (MMR) saw the highest number of sales, with around 1,27,875 units, but also registered an 18% yearly decline. Pune followed with approximately 65,135 units sold, a 20% year-on-year decrease. Together, MMR and Pune constituted 49% of the overall residential sales in 2025.
New Launches See Modest Increase
New property launches across the top seven cities saw a marginal 2% annual increase, rising from about 4,12,520 units in 2024 to around 4,19,170 units in 2025. MMR and Bengaluru led in terms of new launches, collectively accounting for nearly 48% of the total new supply introduced during the year.
Expert Insights and Future Outlook
Anuj Puri, Chairman of ANAROCK Group, highlighted that 2025 was marked by broad-spectrum upheaval, including geopolitical turmoil and economic uncertainties. He noted the trend of sales volumes stabilizing while overall sales value grew. Puri also pointed out that the average residential price growth rate tapered to single digits in 2025, with prices in the top seven cities collectively rising 8% annually. NCR was an exception, seeing 23% price growth, largely due to a higher supply of premium homes.
Puri expressed optimism for 2026, stating that the sector's performance will hinge on key factors such as interest rate cuts by the Reserve Bank of India (RBI) and effective price control by developers. He believes that lower home loan interest rates could significantly revive demand amidst a favorable economic outlook.
Impact
This trend indicates a bifurcation in the housing market, with the luxury segment showing strong resilience and growth potential. While overall unit sales are down, the increasing sales value suggests higher ticket sizes and potentially greater profitability for developers focused on premium offerings. This could influence construction demand, ancillary industries, and overall market sentiment. The outlook for 2026 remains cautiously optimistic, contingent on macroeconomic factors like interest rates.
Impact rating: 7/10