Housing market cools down after boom year as sales decline 12% in 2025, prices remain resilient: PropTiger Report & more related News Here

According to a report by digital real estate transaction and advisory platform PropTiger, India’s residential real estate market entered a normalization phase in 2025, with housing sales slowing from high levels even as prices remained stable, reflecting a more disciplined and flexible market structure.ANI reported that across the top eight cities, all-India residential sales declined 12% year-on-year to 3,86,365 units in 2025 from 4,36,992 units in 2024, the lowest annual sales volume since 2022. New residential supply also declined, falling 6% to 3,61,096 units from 3,85,221 units a year earlier, the lowest level of new launches since 2021, the report said.There was a recession even at the quarterly level. In the October-December quarter of 2025, housing sales fell 10% year-on-year and 0.5% quarter-on-quarter to 95,049 units, the weakest quarterly performance since the April-June quarter of 2023.Omkar Shetty, executive director, Aurum Proptech, said, “2025 was not a year of demand decline, but a year of recalibration. Buyers remained active but more thoughtful, while developers responded with disciplined supply management. This prevented inventory stress and helped prices remain resilient despite soft volumes.”There was a wide variation in city-wise performance during the year. Hyderabad and Chennai emerged as consistent outperformers supported by sustained quarterly and annual growth. Chennai recorded a sharp growth of 55% in annual sales to 24,892 units, while Hyderabad grew by 6% to 54,271 units. In contrast, Mumbai and Pune saw a huge annual decline of 26% and 27% respectively.Delhi-NCR was the only major market to record year-on-year sales decline in all four quarters of 2025, indicating a prolonged phase of consolidation, the report said.On the supply side, new residential launches across eight cities rose 4% year-on-year and 0.2% quarter-on-quarter to 92,007 units in the December quarter. However, for the full year, overall supply growth was 6% lower than in 2024, underscoring developers’ cautious approach amid lower demand.The report said that despite lower transaction volumes, residential prices remained high in key markets, as developers largely avoided aggressive discounting and maintained pricing discipline.“The housing market is transitioning into a more mature, performance-driven phase,” Shetty said. “Growth in 2026 is likely to be driven by affordability, infrastructure-led micro-markets and city-specific fundamentals rather than broad-based acceleration.”