Housing Sales Decline 28% in Q1 2025 Due to High Prices and Global Uncertainty
Overview of Decline in Housing Sales
Housing sales are estimated to decline by 28% in the January-March period of 2025 across seven major Indian cities, according to a report by real estate consultancy Anarock. The total sales are projected to reach 93,280 units, down from 1,30,170 units in the same period of the previous year.
Factors Behind the Decline
Anarock attributes the decline to soaring residential prices and geopolitical uncertainties, which have slowed the housing market’s upward trend. “Skyrocketing residential prices coupled with geopolitical headwinds have slowed the Indian housing market’s bull-run in Q1 2025,” stated Anarock in its report.
City-Wise Breakdown of Sales
Among the seven major cities, the estimated decline in sales is as follows:
- Delhi-NCR: Sales are expected to fall by 20% to 12,520 units from 15,650 units.
- Mumbai Metropolitan Region (MMR): Sales may decrease by 26% to 31,610 units from 42,920 units.
- Bengaluru: Sales are projected to decline 16% to 15,000 units from 17,790 units.
- Pune: Sales could drop 30% to 16,100 units from 22,990 units.
- Hyderabad: Sales are estimated to plunge 49% to 10,100 units from 19,660 units.
- Chennai: Sales are forecasted to decline 26% to 4,050 units from 5,510 units.
- Kolkata: Sales are predicted to drop 31% to 3,900 units from 5,650 units.
Positive Economic Outlook Despite Market Challenges
Despite the decline, Anarock Chairman Anuj Puri remains optimistic about India’s overall economic health. He noted that India’s GDP growth rate is expected to remain the highest globally, with inflation under control. However, he acknowledged that rising housing prices and global uncertainties have impacted residential market activity.
Industry Reactions and Outlook
Industry leaders have provided varied insights on the situation:
- Angad Bedi, CMD of BCD Group, sees the drop as a sign of market correction.
- Bhavesh Kothari, Founder & CEO of Property First, believes that while demand in real estate is cyclical, buyer enquiries remain strong.
- Ashish Agarwal, Director of AU Real Estate, sees this phase as an opportunity for developers to focus on delivering high-quality homes that meet evolving buyer needs.
Future Predictions for the Sector
Data analytics firm PropEquity also projected a 23% annual decline in housing sales across nine major cities, estimating sales at 1.06 lakh units in Q1 2025.
Salil Kumar, Director of Marketing and Business Management at CRC Group, mentioned that the sector is currently in a consolidation phase after years of rapid growth. He expressed confidence that despite the temporary dip, the real estate sector would rebound.
Conclusion
While the housing market experienced a notable dip in Q1 2025, experts agree this phase is part of a broader market correction. Developers and stakeholders remain positive about long-term growth, viewing this period as an opportunity to recalibrate strategies and meet evolving consumer preferences.
