Housing Market Slides in 2025, but Values Climb: ANAROCK Report
India's real estate market experienced a mixed year in 2025, with housing sales taking a hit due to various economic and geopolitical factors. According to ANAROCK Research, the top 7 cities saw a 14% decline in housing sales, with approximately 395,625 units sold in 2025 compared to 459,645 units in 2024. Despite this decline, the overall sales value of housing units witnessed a 6% yearly increase, rising from approximately Rs 5.68 lakh crore in 2024 to over Rs 6 lakh crore in 2025.
Greater Mumbai led the way with the highest number of sales, recording approximately 1,27,875 units sold, a decline of 18% year-on-year. Pune followed with approximately 65,135 units sold, experiencing a 20% year-on-year decline. Together, these two western markets accounted for nearly 49% of the total residential sales in 2025.
New launches in the top 7 cities saw a modest 2% annual increase, rising from approximately 412,520 units in 2024 to approximately 419,170 units in 2025. Greater Mumbai and Bengaluru were the frontrunners in new launches, together contributing almost 48% of the new supply for the year.
"2025 has been a year of broad-spectrum upheaval, including geopolitical turmoil, layoffs in the IT sector, tariff tensions, and other uncertainties," said Anuj Puri, Chairman of ANAROCK Group. The trend for 2025 was characterized by stable sales volumes, with around 4 lakh units sold across the top 7 cities, but with growth in overall sales value. Puri added, "Our data shows that more than 21% of the new supply was launched in the above Rs 2.5 crore price bracket."
Interestingly, the average residential price growth rate has slowed from double digits in previous years to single digits in 2025. Prices in the top 7 cities collectively rose by 8% annually, with the National Capital Region (NCR) seeing double-digit growth at 23%. This significant increase in NCR was 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% were priced over Rs 2.5 crore.
The sector's performance in 2026 will depend on several key factors, most notably rate cuts by the Reserve Bank of India (RBI) and price control by developers. Amid the currently favorable economic outlook, further repo rate cuts leading to lower home loan interest rates could significantly revive demand, Puri noted.
In terms of budget categories, both the demand for and supply of luxury housing increased in 2025. The post-pandemic trend towards bigger, better homes by branded developers continued. The share of new supply of homes priced greater than Rs 2.5 crore in the top 7 cities was a significant 21% in 2025, up from 18% in 2024. "There is every reason to expect this trend to endure in 2026 as well," ANAROCK stated.
Annually, unsold inventory in the top 7 cities rose by 4% by the end of 2025, primarily due to tapered demand and increased new supply. Approximately 5.77 lakh units are currently available on the primary sales market in these cities. Hyderabad saw a marginal decline of 2% in unsold stock, from approximately 97,765 units by the end of 2024 to approximately 96,140 units by the end of 2025, thanks to restricted new supply in the city. Greater Mumbai also witnessed a marginal 1% decline in unsold stock. In contrast, Bengaluru recorded a significant 23% increase in unsold inventory.
