Housing Sales Drop & Supply Dips Significantly in Top 9 Indian Cities Q1 2025 Real Estate Trends The Indian real estate sector especially the residential market has been on a downward spiral in the early months of 2025 A recent report by PropEquity a prominent data analytics firm paints a concerning picture of the markets performance According to the data in the first quarter of 2025 January to March housing sales across the top nine cities dropped by a significant 23 compared to the same period in 2024 In addition to this the supply of new residential units fell dramatically by 34 The overall housing sales stood at a meager 105791 units in Q1 2025 a sharp contrast to the 136702 units in the first quarter of the previous year This decline marks a notable trend that many developers and investors are concerned about as the sector navigates through a challenging phase Breaking Down the Performance Which Cities are Most Affected In this quarter the situation was not uniform across India’s top cities According to the PropEquity report all cities except Bengaluru and DelhiNCR faced a downturn in housing sales Bengaluru's Resilience Bengaluru however stands as a bright spot in this otherwise gloomy scenario The city saw a 10 rise in housing sales reaching a total of 18508 units Bengaluru now accounts for 17 of the total housing sales in these top nine cities a significant rise from 12 in Q1 2024 DelhiNCR's Performance Similarly DelhiNCR India’s national capital region managed to sustain its market momentum with housing sales increasing by 10 to reach 11221 units The regions share of total sales also rose from 7 to 11 in Q1 2025 Sharp Decline in Other Cities On the flip side cities like Hyderabad Mumbai Pune Kolkata Thane Navi Mumbai and Chennai have experienced substantial declines Among these Hyderabad saw the steepest drop of 47 followed by Mumbai’s decline of 36 and Pune’s fall of 33 Other cities also saw considerable decreases with Kolkata facing a 28 drop and Chennai a relatively minor 2 dip Supply Dynamics A Significant Decline While housing sales have been on the decline new residential supply has also been falling sharply The total supply of housing units in Q1 2025 stood at 80774 units a staggering drop from the 122365 units in the same period last year This marks the third consecutive quarter where new launches have remained under the 1 lakh units mark Interestingly Bengaluru once again stood out with housing supply increasing by 17 reaching 20227 units in Q1 2025 Bengaluru now accounts for 25 of the total supply a sharp rise from 14 in Q1 2024 The Decline Across Other Cities Other cities however are experiencing a drastic fall in new launches In Kolkata supply fell by a staggering 62 followed by 50 drops in both Mumbai and Thane Cities like Pune saw a 48 drop while Chennai and Hyderabad registered declines of 46 and 38 respectively Industry Experts Weigh In Experts believe this decline is part of a larger correction following three years of booming growth in the market Samir Jasuja Founder & CEO of PropEquity shared The housing market is undergoing a correction after three consecutive years 20212023 of record supply The absorption rate has decreased and sales are showing a declining trend Cities like Hyderabad Pune and Thane which traditionally had high supply continue to see reduced activity These cities had the highest supply among all tier 1 cities in the previous years 2022 and 2023 but now face a significant slowdown Real Estate Developers Respond Despite the challenges real estate developers remain optimistic Nikunj Sanghavi Managing Director of Veena Developers remarked We are focusing on providing value-driven solutions such as flexible payment plans and ready-to-move-in properties ensuring buyers have accessible and attractive options Despite the current market conditions long-term growth remains promising Pawan Agarwal Managing Director of NK Realtors also echoed similar sentiments stating In CY24 Kolkatas apartment sector recorded a 12 year-on-year price appreciation We believe the market will gradually recover once economic conditions stabilize Looking Ahead The Road to Recovery As the real estate market navigates through these challenges developers and investors are adjusting their strategies to meet changing demands The ongoing urbanization rise of the middle class and growing demand for homes in emerging locations continue to fuel optimism Experts predict that once the economic conditions stabilize the residential real estate market will see a gradual recovery and housing sales may pick up again The future of India's real estate market looks uncertain for now but with strategic adjustments and timely interventions the sector remains poised for a potential comeback