New Delhi [India], January 24 : India's residential real estate market entered a phase of normalisation in 2025, with housing demand softening gradually but remaining structurally resilient, according to a report released by PropTiger.
Across the top eight Indian cities, all-India residential sales declined 12 per cent year-on-year to 386,365 units in 2025, compared with 436,992 units in 2024, marking the lowest annual sales since 2022, as per the report by digital real estate transaction and advisory platform.
New residential supply during the year fell 6 per cent to 361,096 units from 385,221 units in 2024, the lowest annual supply addition since 2021, the report said.
In the October-December quarter (Q4 2025), housing sales declined 10 per cent year-on-year and 0.5 per cent quarter-on-quarter to 95,049 units, the lowest quarterly sales volume since Q2 2023.
Onkar Shetye, Executive Director of 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."
City-level divergence widened through the year, with Hyderabad and Chennai emerging as consistent outperformers, recording sustained quarterly and year-on-year growth.
Chennai saw annual sales rise 55 per cent to 24,892 units, while Hyderabad recorded a 6 per cent increase to 54,271 units. In contrast, Mumbai and Pune posted sharp annual sales declines of 26 per cent and 27 per cent, respectively
Delhi-NCR remained the only major market to record year-on-year sales declines across all four quarters of 2025, reflecting a prolonged phase of consolidation, the report noted
On the supply side, total new residential supply across the eight cities rose 4 per cent year-on-year and 0.2 per cent quarter-on-quarter in Q4 2025 to 92,007 units. However, for the full year, new launches declined 6 per cent compared with 2024.
Despite the moderation in sales volumes, residential prices continued to rise across key markets. Developers largely avoided aggressive discounting, reinforcing pricing discipline, the report said
"The housing market is transitioning into a more mature, execution-led phase," added Onkar Shetye. "Growth in 2026 is likely to be driven by affordability, infrastructure-led micro-markets, and city-specific fundamentals rather than broad-based acceleration."