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India's Housing Market Sees 16% Decline in Sales in Q4 2025

Published: December 24, 2025 | Category: Real Estate
India's Housing Market Sees 16% Decline in Sales in Q4 2025

NEW DELHI: Despite repo rate cuts and income tax rebates in this year’s union budget, India’s real estate sector is ending calendar year 2025 on a low note. As per early estimates, housing sales in India’s top 9 cities fell to 98,019 units in Q4 2025 (October-December), registering a 16% year-on-year decline. This is the lowest quarterly sales recorded since Q3 2021, according to real estate data analytics firm PropEquity.

Except for Navi Mumbai and Delhi-NCR, which saw 13% and 4% growth in sales respectively in Q4 2025, all 7 cities saw a decline in sales. Sales fell sharpest by 31% to 17,762 units in Pune, followed by a 26% decline in Thane and a 25% slump in Mumbai.

Housing supply fell 10% YoY to 88,427 units in Q4 2025, with only Delhi NCR (29%), Navi Mumbai (15%), and Chennai (9%) recording growth. Other 6 cities saw a decline in supply of up to 30%.

“Traditionally, the October-December period records strong sales momentum and new launches driven by the festive season. However, the recent decline reflects a shift toward premiumisation in the market, as evidenced by value growth despite a contraction in volumes. This trend has been continuing from 2024,” said Samir Jasuja, Founder & CEO, PropEquity.

Jasuja explained that in 2023, approximately 4.81 lakh units were launched with a total value of Rs 6.3 lakh crore. In contrast, 2024 saw the launch of 4.11 lakh units—around 70,000 fewer units—yet with a higher aggregate value of Rs 6.8 lakh crore.

Industry insiders stated that there is a dearth of buyers in the affordable and mid-income segment, and it is only the elite sector that is driving sales. A promoter of a Delhi NCR-based real estate firm said that there is no intention or willingness among developers to launch affordable properties.

“Further, a delay by commercial banks to lower interest rates and a sharp appreciation in property prices is having an impact on total volumes. This trend will likely continue in 2026,” the promoter said while requesting anonymity.

Jasuja said that significant funds raised by developers in 2025 are expected to translate into increased project launches in 2026. He added that improved transmission by banks of the cumulative 125 bps repo rate reduction could lead to lower home loan rates, further supporting demand.

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Frequently Asked Questions

1. What is the current state of housing sales in India's top cities?
Housing sales in India’s top 9 cities fell to 98,019 units in Q4 2025, marking a 16% year-on-year decline and the lowest quarterly sales since Q3 2021.
2. Which cities saw an increase in housing sales in Q4 2025?
Navi Mumbai and Delhi-NCR saw increases in housing sales, with Navi Mumbai experiencing a 13% growth and Delhi-NCR a 4% growth.
3. What factors are contributing to the decline in housing sales?
The decline is attributed to a shift toward premiumisation in the market, a dearth of buyers in the affordable and mid-income segments, and delays in interest rate reductions by commercial banks.
4. How has the housing supply been affected in Q4 2025?
Housing supply fell 10% year-on-year to 88,427 units, with only Delhi NCR, Navi Mumbai, and Chennai recording growth.
5. What are the expectations for the housing market in 2026?
Developers’ significant fund raising in 2025 is expected to lead to increased project launches in 2026. Additionally, improved transmission of repo rate reductions by banks could result in lower home loan rates and support demand.