Housing sales down 14% as prices rise

Hardening property prices, layoffs in the IT sector, geopolitical tensions and other uncertainties hated India's residential growth momentum in 2025, with housing sale declining by 14%.According to Anarock’s annual data, top 7 cities have sold approximately 3,95,625 units in the year, against 4,59,645 units in 2024.However, the overall sales value of housing units saw a 6% yearly jump – from Rs 5.68 lakh crore in 2024 to over Rs 6 lakh crore in 2025.Also Read: High-end housing developers go for integrated development as homebuyers show preference for convenienceMMR witnessed the highest sales of 1,27,875 units, registering an 18% yearly decline. Pune followed with65,135 units sold, declining by 20% y-o-y. The two western markets together led residential sales in 2025, comprising a 49% overall share. New launches in the top 7 cities saw a 2% annual increase – from 4,12,520 units in 2024 to 4,19,170 units in 2025. MMR and Bengaluru saw the maximum new launches, together accounting for an almost 48% of the new supply in the year.“The year’s trend was of sale volumes stabilizing at around 4 lakh units across the top 7 cities, but growth in overall sales value. Our data shows that more than 21% of the new supply was launched in the above Rs 2.5 crore price bracket,” said Anuj Puri, chairman, Anarock group.Interestingly, the average residential price growth rate has tapered down from double digits in previous years to single digits in 2025.Prices in the top 7 cities collectively rose 8% annually, and only NCR saw double-digit growth at 23% - largely due to a higher new supply of pricier homes. Out of NCR’s total new supply of 61,775 units during the year, over 55% was priced over Rs 2.5 crore.“The sector’s performance in 2026 hinges on several key factors, most notably rate cuts by the RBI and price control by developers. Amid the currently favourable economic outlook, further repo rate cuts leading to lower home loan interest rates can cause demand to revive significantly,” Puri said.Among budget categories, both the demand for and supply of luxury housing rose in 2025 – the post-pandemic trend toward bigger, better homes by branded developers continues. The share of new supply of homes priced Rs 2.5 crore in the top 7 cities was a significant 21% in 2025, against 18% in 2024. There is every reason to expect this trend to endure in 2026, as well.On an annual basis, the collective average housing price rose by 8% in the top 7 cities - from Rs 8,590/sq. ft. by Q4 2024-end to around Rs 9,260/sq. ft. at Q4 2025-end. At 23%, Delhi-NCR recorded the highest yearly average residential price rise – from Rs 7,550/sq. ft. in 2024 to about Rs 9,300/sq. ft. in 2025. The other major cities recorded single-digit price appreciation, ranging between 4-9% in 2025 as against last year’s 13-27% in 2024.Annually, unsold inventory in the top 7 cities rose 4%by 2025-end, largely because of tapered demand and increased new supply in the year. 5.77 lakh units are currently on the primary sales market in these cities. Notably, thanks to restricted new supply in the city, Hyderabad saw a marginal decline of 2% in unsold stock in 2025 - from 97,765 units by 2024-end to approx. 96,140 units by 2025-end.MMR also witnessed a marginal 1% decline in unsold stock. All other cities saw their unsold inventory rise over the year, with Bengaluru recording a significant 23% increase.