Housing Sales See 12% Decline in Q1 2025 Across Top Seven Cities: JLL Report
The residential real estate market is witnessing a significant shift, with a 12% decline in housing sales across the top seven cities in Q1 2025, according to a report by JLL. The report highlights a growing preference for properties priced above ₹1 crore, indicating a shift in buyer behavior.
Housing SalesReal EstateJll ReportLuxury PropertiesEconomic FactorsReal Estate NewsApr 25, 2025
The shift in buyer preferences is one of the key factors driving the decline. There has been a noticeable decrease in demand for properties priced below ₹1 crore, while the market for homes priced above ₹1 crore remains relatively stable. This trend suggests that buyers are increasingly looking for higher-quality, more luxurious living spaces, which are often priced at a premium.
According to the JLL report, several factors are contributing to this shift. The economic slowdown, increased mortgage rates, and a cautious approach to major investments are primary reasons. Additionally, the growing trend of remote work has also played a role, as more individuals opt for spacious, well-equipped homes that can serve as both living and working spaces.
Mumbai, the financial capital of India, has seen the most significant decline in housing sales, with a 15% drop in the quarter. This is followed by Delhi-NCR, which recorded a 13% decline. Bengaluru, Hyderabad, Chennai, Kolkata, and Pune have also experienced varying degrees of decline, ranging from 8% to 10%.
The report further notes that while the overall market is experiencing a downturn, there are still pockets of resilience. For instance, the luxury segment, particularly in cities like Mumbai and Bengaluru, continues to attract buyers. These buyers are often affluent individuals or families who are less sensitive to economic fluctuations.
The decline in housing sales has also impacted the real estate developers, who are now focusing on premium and luxury projects to cater to the changing market dynamics. Many developers are re-evaluating their strategies and investing in high-end amenities and sustainable features to attract buyers.
Despite the challenges, experts believe that the market will stabilize in the coming quarters. The government's initiatives, such as the Pradhan Mantri Awas Yojana (PMAY), are expected to boost the affordable housing segment. Additionally, the easing of mortgage rates and the introduction of new housing schemes could help revive demand.
In conclusion, the residential real estate market in India is undergoing a significant transformation. While the current trend shows a decline in sales, the shift towards higher-end properties indicates a more discerning and affluent buyer base. Developers and policymakers will need to adapt to these changes to ensure the market remains resilient and continues to grow.
JLL, a leading professional services and investment management firm, provides comprehensive real estate services and solutions for property owners, investors, and occupiers. With a global network and deep market expertise, JLL plays a crucial role in shaping the future of the real estate industry.
Frequently Asked Questions
What is the main reason for the decline in housing sales in Q1 2025?
The main reasons for the decline in housing sales include economic factors such as the slowdown, increased mortgage rates, and a cautious approach to major investments, as well as a shift in buyer preferences towards higher-end properties.
Which cities have seen the most significant decline in housing sales?
Mumbai has seen the most significant decline with a 15% drop in housing sales, followed by Delhi-NCR with a 13% decline.
How is the luxury segment of the real estate market performing?
The luxury segment, particularly in cities like Mumbai and Bengaluru, continues to attract buyers and remains relatively stable, despite the overall decline in the market.
What are the government initiatives to boost the affordable housing segment?
The government's Pradhan Mantri Awas Yojana (PMAY) is one of the key initiatives aimed at boosting the affordable housing segment. Additionally, the easing of mortgage rates and new housing schemes are expected to help revive demand.
How are real estate developers adapting to the changing market dynamics?
Real estate developers are focusing on premium and luxury projects, investing in high-end amenities, and incorporating sustainable features to attract the changing buyer base.
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