Image Source : The Tribune
India’s residential real estate market witnessed a modest slowdown in the third quarter of 2025, with housing sales across the top nine cities declining by 4 percent year-on-year, according to a report released on September 20 by PropEquity. The dip, while not alarming, signals a cooling phase after several quarters of robust growth driven by post-pandemic recovery, low interest rates, and rising urban migration.
The report covers key metros including Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, Ahmedabad, and Jaipur. Analysts attribute the decline to a combination of seasonal factors, cautious buyer sentiment, and delayed launches in select micro-markets.
Key Highlights From The Q3 2025 Housing Report
• Housing sales across top nine cities fell 4 percent YoY in Q3 2025
• Delhi-NCR, Mumbai, and Bengaluru saw the sharpest declines
• Pune and Hyderabad remained relatively stable, with marginal growth
• Inventory levels rose by 6 percent, indicating slower absorption
• Average property prices increased by 2 to 4 percent across most cities
City-Wise Breakdown And Market Trends
1. Delhi-NCR
Sales dropped by 6 percent YoY, largely due to delayed approvals and cautious buyer sentiment in Noida and Gurugram. However, Dwarka Expressway and parts of South Delhi continued to attract premium buyers.
2. Mumbai Metropolitan Region
A 5 percent decline was noted, with Thane and Navi Mumbai showing resilience. High ticket prices and limited new launches in central Mumbai contributed to the dip.
3. Bengaluru
Sales fell by 7 percent, primarily in the mid-segment category. Peripheral zones like Whitefield and Sarjapur Road saw reduced traction due to infrastructure bottlenecks.
4. Pune
The city bucked the trend with a 2 percent increase in sales, driven by affordable housing and strong demand in Hinjewadi and Wagholi.
5. Hyderabad
Sales remained flat, with steady demand in Kondapur and Gachibowli. Price appreciation and limited supply kept the market balanced.
6. Chennai
A 3 percent decline was observed, with South Chennai and OMR corridor seeing slower movement. Flood concerns and regulatory delays impacted sentiment.
7. Kolkata
Sales dipped by 4 percent, especially in Rajarhat and New Town. However, EM Bypass and Salt Lake continued to perform steadily.
8. Ahmedabad
A 2 percent drop was recorded, with demand softening in SG Highway and Bopal. Price hikes and limited inventory affected buyer interest.
9. Jaipur
Sales declined by 5 percent, with Tonk Road and Ajmer Road witnessing reduced activity. The market remains largely end-user driven.
Factors Behind The Slowdown
• Seasonal lull during monsoon months
• Rising home loan interest rates after RBI’s recent policy adjustments
• Delay in project launches due to regulatory clearances
• Price fatigue among buyers after sustained appreciation
• Shift in investor focus toward commercial and rental yield assets
Inventory And Pricing Dynamics
Despite the dip in sales, property prices continued to inch upward, reflecting developer confidence and input cost pressures. The average price rise ranged from 2 to 4 percent, with luxury and premium segments seeing sharper hikes.
Inventory levels rose by 6 percent YoY, indicating slower absorption and cautious buyer behavior. Developers are expected to recalibrate launch strategies and offer festive incentives to revive momentum in Q4.
Looking Ahead
With the festive season approaching, industry stakeholders anticipate a rebound in demand, especially in the affordable and mid-income segments. New launches, flexible payment plans, and targeted marketing campaigns are likely to drive recovery.
The Q3 dip may be a temporary pause in an otherwise resilient housing cycle. As urban infrastructure improves and regulatory clarity strengthens, long-term fundamentals remain intact.
Sources: PropEquity, Financial Express, Moneycontrol, Business Standard.
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