Housing Sales in Top Seven Cities See 12% Decline in Q1 2025: JLL Report

The real estate market in India faced a significant downturn in the first quarter of 2025, with a notable 12% decline in housing sales across the top seven metropolitan cities, according to a recent report by JLL. This decline highlights the ongoing challenges faced by the housing sector, which has been grappling with various economic and regulatory changes.

The cities included in the study are Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune. Among these, Delhi-NCR and Bengaluru recorded the highest property price growth, underscoring the continued demand and investment potential in these regions.

Despite the overall decline in sales, property prices have shown resilience. The annual property price growth in these cities remained positive, with some areas experiencing significant increases. For instance, Delhi-NCR saw a price increase of 6%, while Bengaluru witnessed a 5% rise. These figures indicate that while the number of transactions has decreased, the value of properties continues to rise.

The report attributes the decline in sales to a combination of factors, including economic uncertainty, higher interest rates, and a cautious buyer sentiment. The ongoing economic slowdown has led to reduced disposable income and a decrease in consumer confidence, making it harder for potential buyers to enter the market.

Moreover, regulatory changes, such as the implementation of the Real Estate Regulatory Authority (RERA) and changes in tax policies, have also contributed to the slowdown. These regulations, while intended to bring transparency and accountability to the sector, have led to increased compliance costs for developers and a more stringent approval process.

However, the report remains optimistic about the long-term outlook for the Indian real estate market. It predicts that with the right policy interventions and economic reforms, the sector is poised for a recovery in the coming quarters. The demand for affordable housing, especially in tier-2 and tier-3 cities, is expected to drive growth.

In terms of specific market trends, the report highlights a shift towards smaller and more affordable homes. Developers are increasingly focusing on projects that cater to first-time buyers and young professionals. This trend is particularly evident in cities like Pune and Hyderabad, where the entry-level segment has shown robust growth.

The report also notes the growing importance of technology in the real estate sector. Online platforms and digital tools are playing a crucial role in connecting buyers and sellers, streamlining the buying process, and providing transparency. The adoption of technologies such as virtual tours and blockchain for property transactions is expected to gain momentum in the future.

In conclusion, while the first quarter of 2025 saw a decline in housing sales across the top seven cities, the resilience of property prices and the positive long-term outlook suggest that the market is on the path to recovery. With the right policies and market conditions, the real estate sector is expected to regain its momentum in the coming months and years.