India's Housing Market Faces Slowdown: Sales Decline in Major Cities Amid Rising Affordability Concerns

India's housing sales declined by 4% year-on-year in the January-March quarter to 84,827 units across eight major cities, according to a report by Knight Frank. The decline is driven by high property prices and market uncertainty stemming from the West Asia conflict.

Sales of residential properties fell in Mumbai, Delhi-NCR, and Pune, but increased in the other five cities—Bengaluru, Hyderabad, Chennai, Ahmedabad, and Kolkata.

What is Causing the Sales Dip

According to Shishir Baijal, International Partner, Chairman & Managing Director of Knight Frank India, the moderation in residential demand warrants closer attention, particularly as it follows a sustained multi-year upcycle.

“While this phase can be partly attributed to a natural consolidation after strong growth, the continued rise in prices alongside softening volumes indicates growing pressure on affordability and absorption,” Baijal said. At the same time, he noted that the volatile geopolitical situation has also resulted in subdued interest in residential demand.

Sales in Major Cities

As per the data from Knight Frank, housing sales in Mumbai fell by 7% in January-March to 23,185 units compared to the year-ago period. In Delhi-NCR, sales fell by 11% annually to 12,734 units in the first quarter of this calendar year.

Pune witnessed an annual fall of 11% to 12,711 units. However, the sales of residential properties in Bengaluru rose by 5% annually to 13,092 units in January-March. Hyderabad saw an annual growth of 1% to 9,541 units, while Chennai witnessed a 9% rise to 4,763 units.

Furthermore, the report points out that in Ahmedabad, sales grew by 2% to 4,758 units, while the housing sales in Kolkata went up by 5% to 4,043 units in January-March this year, compared to the same period of 2025.

The new supply also fell by 2% annually to 94,855 units in January-March.