Is the Indian real estate boom coming to an end? The latest data suggests that the sector is witnessing a significant slowdown, with home sales dropping 23% in the first quarter of 2025. Skyrocketing property prices, economic uncertainties, and global geopolitical tensions have made investors hesitant, leading to a steep decline in residential property transactions across major cities.
According to a report released by PropEquity, home sales in nine major cities of India have fallen from 1,36,702 units in Q1 2024 to 1,05,791 units in Q1 2025.
Why Are Home Sales Declining?
PropEquity Founder & CEO Sameer Jasuja attributes this decline to:
- High property prices making homes unaffordable for buyers.
- Geopolitical instability creating financial uncertainty.
- Weakness in the Indian economy, causing investors to adopt a cautious approach.
Cities Facing the Biggest Decline in Home Sales
- Hyderabad: Sales down 47%, from 20,835 units to 11,114 units.
- Mumbai: Drop of 36%, from 16,204 units to 10,432 units.
- Pune: Decline of 33%, from 26,364 units to 17,634 units.
- Thane: Fall of 27%, reaching 19,254 units from 26,234 units.
- Kolkata: Sales down 28%, from 5,882 units to 4,219 units.
- Navi Mumbai: Drop of 7%, from 9,218 units to 8,551 units.
- Chennai: Minor decline of 2%, from 4,962 units to 4,858 units.
Only Two Cities Witness Growth in Home Sales
Amid the overall downturn, two major cities defied the slowdown:
- Bengaluru: Home sales rose 10%, from 16,768 units to 18,508 units.
- Delhi-NCR: Sales increased 10%, reaching 11,221 units from 10,235 units.
New Residential Property Supply Shrinks by 34%
The downturn isn’t limited to just home sales. The supply of new residential properties has also fallen 34%, with only 80,774 new units being introduced in Q1 2025, compared to 1,22,365 units in the same period last year.
Experts believe this marks a market correction after three years of record-breaking demand in the housing sector.
