Q1 home sales and launches drop amid price hikes and geopolitical concerns: PropTiger.com report

Against the backdrop of worsening geopolitical concerns that can deeply impact the domestic job market, sales fell in all key residential markets except Bengaluru and Chennai

 

Mumbai, 16^thApril, 2025: Home sales across India’s eight prime residential markets in the January-March period fell 19% over last year, as rising property prices and slowing growth forced buyers to exercise caution, says the latest report by digital real estate transaction & advisory platform PropTiger.com.

 

According to the Real Insight Residential: Q1 2025 report (January–March 2025) by PropTiger.com—part of REA India, which also owns Housing.com— new home supply also dropped 10% in the first quarter of the calendar year, as developers adjusted expectations amid a dramatic price appreciation of the past couple of years, which made housing unaffordable for a large section of buyers in the world’s most populous country.

 

“The huge spike in prices had already started to show its adverse impact on sales. With a global trade war now bringing new uncertainty, it is only natural for buyers to adopt a cautious approach to investment, particularly in something so big as real estate,” said Mr. Dhruv Agarwala, Group Chief Executive Officer, Housing.com and PropTiger.com.

 

The sales decline could have been a lot sharper if not for the 25-basis-point rate cut announced by the Reserve Bank of India (RBI) in February, Mr. Agarwala added.

 

Most urban Indians rely on housing loans to make a house purchase. Repo rate is the benchmark that determines the interest they would pay on this credit. A downward change in this rate is a certain measure to boost buyer confidence.

 

Sales fall across cities barring Bengaluru, Chennai

According to the report, less than 100,000 residential units were sold in the January-March quarter, with most cities covered in the analysis showing a fall in numbers. While Bengaluru and Chennai bucked this trend, Hyderabad, MMR and Pune witnessed the sharpest sales drop.

 

Signs of a market correction were also visible through a dip in new supply, with five of the eight cities showing an annual decline in launches. Pune, Hyderabad and Ahmedabad registered the sharpest fall in numbers, the report showed.

 

Sales (UNITS)
City	Q1 25	Q4 24	Q1 24	QoQ	YoY
Ahmedabad	10,730	10,170	12,915	6%	-17%
Bengaluru	11,731	13,236	10,381	-11%	13%
Chennai	4,774	4,073	4,427	17%	8%
Delhi NCR	8,477	9,808	10,058	-14%	-16%
Hyderabad	10,647	13,179	14,298	-19%	-26%
Kolkata	3,803	3,715	3,857	2%	-1%
Mumbai	30,705	33,617	41,594	-9%	-26%
Pune	17,228	18,240	23,112	-6%	-25%
Grand Total	98,095	1,06,038	1,20,642	-7%	-19%
New Launches (UNITS)
City	Q1 25	Q4 24	Q1 24	QoQ	YoY
Ahmedabad	2,384	3,515	3,116	-32%	-23%
Bengaluru	18,183	15,157	10,000	20%	82%
Chennai	4,070	4,005	4,723	2%	-14%
Delhi NCR	7,952	10,048	6,872	-21%	16%
Hyderabad	10,156	9,066	15,095	12%	-33%
Kolkata	3,534	3,091	1,485	14%	138%
Mumbai	31,322	30,127	36,784	4%	-15%
Pune	15,543	13,652	24,945	14%	-38%
Grand Total	93,144	88,661	1,03,020	5%	-10%