India's Housing Market Sees Temporary Slowdown, Organised Developers Remain Resilient
The residential real estate market in India faced a temporary slowdown in March and April 2025, with a drop in sales in both value and volume. However, key organised developers like Prestige Estate and Brigade Enterprise are expected to see growth, driven by favorable government policies and increasing demand for larger homes.
Real EstateHousing MarketOrganised DevelopersResidential Real EstateIndiaReal Estate MumbaiMay 23, 2025
While the residential real estate industry had a promising start in 2025, it slowed down significantly in March and continued into April. The demand for residential real estate fell by 2 per cent in value on both a year-over-year (YoY) and sequential basis in April. Additionally, sales by volume were down by 15 per cent on a YoY basis.
According to the Nuvama report, Hyderabad and Pune witnessed the most significant decrease in sales by value. In April, sales in Hyderabad and Pune decreased by 19 per cent and 16 per cent, respectively. While sales in Chennai remained flat, Kolkata registered a 7 per cent decrease. Bangalore and Delhi NCR were the only two metro cities that posted an increase, with 14 per cent and 7 per cent growth in value, respectively. Municipal sales remained almost flat, with just 1 per cent growth.
The slowdown in the housing market has also affected the launches of new projects. In April, new project launches decreased by 29 per cent YoY in the seven key metro cities in India. Except for Hyderabad and Kolkata, which saw an increase of 64 per cent and 36 per cent YoY, respectively, every other metropolitan city in India experienced a decrease in new launches in April.
Despite the slowdown in new project launches, the inventory has remained steady at 17 months in April. Hyderabad has the highest inventory of 26 months, while Pune and NCR are the best markets with an inventory of 11 to 12 months.
Housing prices in the seven cities have been on the rise, posing a challenge to affordability. The luxury or premium segment has performed well, leading to an overall increase in housing prices. In April, prices grew the most by 20 per cent YoY in Kolkata, followed by Mumbai and Bengaluru, both registering an 18 per cent YoY increase. Delhi NCR saw an 11 per cent YoY increase in housing prices. Hyderabad, Chennai, and Pune also registered a 9 per cent, 8 per cent, and 9 per cent YoY growth in residential real estate in April, respectively.
Despite the slowdown in March and April, 2025 has been a year of growth for organised real estate companies, according to the Nuvama report. The report highlights that lower interest rates compared to the earlier cycle and incentives by the state and central government are among the key factors working in favor of these companies.
Additionally, the increase in the safe harbor limit—the threshold between the stamp duty value and the actual transaction value—and the demand for larger homes post-COVID have also favored organised real estate players.
The Nuvama research suggests that, in the long term, with a strong balance sheet and brand recognition, the rise in capital investment in real estate will further aid the big companies in the housing real estate market. The report indicates that the sales volume slowdown in the residential market might be coming to an end, and with a good launch pipeline, organised developers are better prepared to absorb the increase in demand.
Frequently Asked Questions
What caused the slowdown in India's residential real estate market in March and April 2025?
The residential real estate market in India saw a slowdown in March and April 2025 due to a drop in sales in both value and volume. Key cities like Hyderabad and Pune experienced significant decreases in sales, while only a few cities like Bangalore and Delhi NCR saw an increase.
Which cities in India saw the biggest decrease in real estate sales in April 2025?
Hyderabad and Pune saw the biggest decrease in real estate sales in April 2025, with sales decreasing by 19 per cent and 16 per cent, respectively.
Why are organised developers like Prestige Estate and Brigade Enterprise expected to see growth despite the slowdown?
Organised developers are expected to see growth due to factors such as lower interest rates, government incentives, increased safe harbor limits, and the demand for larger homes post-COVID. Additionally, their strong balance sheets and brand recognition will help them absorb the increase in demand.
What is the current state of new project launches in India's real estate market?
New project launches in India's real estate market decreased by 29 per cent YoY in April 2025 in the seven key metro cities. However, cities like Hyderabad and Kolkata saw increases in new launches.
How have housing prices in India's key cities changed in April 2025?
Housing prices in India's key cities have increased, with the highest growth of 20 per cent YoY in Kolkata. Mumbai and Bengaluru saw an 18 per cent increase, while Delhi NCR saw an 11 per cent increase. Other cities like Hyderabad, Chennai, and Pune also registered significant growth.
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