India's Urban Housing Market Sees 14% Sales Decline in 2025: Mumbai, Pune, and Hyderabad Hit Hardest
India’s urban housing market witnessed a significant slowdown in 2025, with home sales across the top seven cities falling by 14% year-on-year. Despite this decline, the total value of transactions continued to rise, increasing by about 6% to cross ₹6 lakh crore. This divergence between sales volume and transaction value underscores the market's adaptation to higher prices, economic uncertainty, and shifting buyer preferences, with significant implications for affordability and urban growth planning.
According to a recent industry report, approximately 3.95 lakh homes were sold in 2025 across the country’s largest residential markets, compared to 4.59 lakh units in the previous year. The Mumbai Metropolitan Region remained the largest market by volume, recording nearly 1.28 lakh sales, though this marked an 18% annual decline. Pune followed with over 65,000 units sold, down 20%. Together, these two western markets accounted for almost half of all urban housing sales in 2025. Industry experts noted that price escalation and cautious buyer sentiment significantly impacted demand in these traditionally high-performing regions.
Southern markets presented a mixed picture. Bengaluru saw a modest 5% drop in sales, reflecting relatively resilient end-user demand supported by diverse employment sectors. Hyderabad, however, experienced one of the sharpest corrections, with sales falling more than 20% due to restrained new supply absorption. Chennai stood out as the only city to post growth, with sales rising 15%, aided by stable pricing and steady local demand.
While fewer homes were sold, new project launches edged up slightly during the year, indicating continued developer confidence in long-term urban housing demand. Nearly four-fifths of new supply came from Mumbai, Pune, Bengaluru, and the National Capital Region. A significant portion of this supply was concentrated in higher price brackets, reflecting a sustained tilt towards larger homes and branded developments. An industry observer commented that the market in 2025 was shaped by global geopolitical tensions, employment uncertainty in technology-driven sectors, and a maturing post-pandemic housing cycle. “Sales volumes have stabilized, but buyers are far more selective, and affordability has become central to decision-making,” the expert noted.
Average residential prices across the seven cities rose by around 8% during the year, though growth moderated compared to the sharp increases seen earlier. Unsold inventory increased marginally, signaling the need for better alignment between supply, pricing, and genuine end-user demand. Looking ahead, analysts suggest that interest rate movements, improved public transport connectivity, and more energy-efficient housing designs could help revive demand in 2026. As cities balance growth with sustainability, the challenge will be to deliver housing that remains accessible, inclusive, and responsive to changing urban lifestyles.
