Housing Sales Decline 12% in 2025; Bengaluru, Hyderabad, and Chennai Show Resilience

While housing sales across the top eight cities fell 12% to 3,86,365 units in 2025 from 4,36,992 units in 2024, the three major southern cities, Bengaluru, Hyderabad, and Chennai, together recorded a 15% rise in sales last year to over 1.33 lakh units. This growth was driven by improved supply and robust demand, according to a PropTiger report.

Residential sales declined in the Mumbai region, Delhi-NCR, Pune, and Ahmedabad, but rose in Bengaluru, Hyderabad, Chennai, and Kolkata.

2025 was not a year of demand destruction, but one of recalibration. Buyers remained active but more deliberate, while developers responded with disciplined supply management. This prevented inventory stress and helped prices remain resilient despite softer volumes, said Onkar Shetye, Executive Director of Aurum PropTech.

The housing market is transitioning into a more mature, execution-led phase. Growth in 2026 is likely to be driven by affordability, infrastructure-led micro-markets, and city-specific fundamentals rather than broad-based acceleration, he added.

In Bengaluru, housing sales rose 13% to 54,414 units last year from 48,272 units in 2024. Chennai saw a 55% increase in sales to 24,892 units from 16,044 units, while Hyderabad witnessed a 6% increase to 54,271 units from 51,337 units. Together, these three southern cities clocked sales of 1,33,577 units last year, up 15.5% from 1,15,653 units in the preceding year, according to Real Insight – Residential CY 2025, the annual housing market report released by PropTiger.

Real estate consultant PropTiger was acquired last year by the Mumbai-based listed entity Aurum PropTech.

In Q4 2025, sales contracted 10% YoY and 0.5% QoQ to 95,049 units. This is the lowest quarterly sales since Q2 2023 (80,250 units). During 2025, quarterly sales moderated from 98,095 units in Q1 2025 to 95,049 units in Q4 2025, reflecting demand re-timing rather than contraction.

Housing supply down by 6%; prices continue to increase

The total new supply across the eight cities fell 6% to 3,61,096 units in 2025, compared with 3,85,221 units in 2024. This is the lowest annual supply since 2021. In the October-December (Q4) 2025, supply rose 4% YoY and 0.2% QoQ to 92,007 units.

Despite moderate sales, residential prices continued to rise across key markets, supported by limited ready inventory, elevated construction costs, and calibrated new supply. Developers largely avoided aggressive discounting, reinforcing pricing discipline, the report noted.