New Delhi [India], March 23 : The housing market continued its downward trend with housing sales in India's top nine cities falling by 23 per cent while supply declined by a whopping 34 per cent in Jan-March of 2025, said a report by data analytics firm PropEquity.
Housing sales in Q1 2025 stood at 1,05,791 units as compared to 1,36,702 units in the same period last year. Except in Bengaluru and Delhi-NCR, all seven cities witnessed a decline in sales.
Housing supply, on the other hand, stood at 80,774 units in Q1 2025 as compared to 1,22,365 units in the same period last year, marking three consecutive quarters of under-1 lakh units launched. Except in Bengaluru, all eight cities saw a decline in new supply in the first quarter.
Samir Jasuja, Founder & CEO, PropEquity said, "The housing market is witnessing some correction after three years (2021, 2022, 2023) of record supply because of which absorption/sales is also on a declining trend. The rise in home prices and caution on the part of investors due to geo-political developments and certain weaknesses in the Indian economy have resulted in a drop in sales. However, the market has displayed strong demand as is evident from the healthy absorption to supply ratio, which stood at 131 per cent in Q1 2025, 132 per cent in Q4 2024 and 127 per cent in Q3 2024."
He said that traditionally high-supply markets - Hyderabad, Pune and Thane - continue to decline. These cities had the highest supply among all tier-1 cities for two years running 2022 and 2023, before touching a low in 2024.
"In this quarter, they cumulatively saw 28,227 units of lesser supply as compared to the same period last year. In fact, the share of the three cities to the total launches has come down from to 29 per cent in Q1 2025 as compared to 3 per cent in the same period last year," he added.
Housing supply rose by 17 per cent in Bengaluru to 20,227 units in Q1 2025. The city accounted for 25 per cent of the total launches in Q1 2025, rising from 14 per cent in the same period last year.
It fell the most in Kolkata at 62 per cent followed by 50 per cent each in Mumbai and Thane, 48 per cent in Pune, 46 per cent in Chennai, 38 per cent in Hyderabad, 24 per cent in Navi Mumbai and 14 per cent in Delhi-NCR.