Residential Real Estate Launches Decline by 5% in H1 2025 Amid Market Caution
India's residential real estate sector has seen a 5% decline in new project launches in the first half of 2025, reflecting a more cautious approach by developers due to rising costs and evolving market dynamics.
Residential Real EstateCredaiMarket DynamicsHousing SalesNew LaunchesReal EstateAug 02, 2025
The report released by the Confederation of Real Estate Developers' Associations of India (CREDAI) in collaboration with CRE Matrix reveals that the number of units launched across India has been declining, from approximately 3 lakh units in H1 CY'24 to about 2.6 lakh units in H1 CY'25. The data of pan India market performance in the first half shows that Tier 1 cities across India recorded housing sales worth approximately ₹3.6 lakh crore, marking a 9 per cent increase from ₹3.3 lakh crore in H1 CY 2024.
The July edition of CREDAI's India Housing Report shows that the National Capital Region (NCR) boosted its position, with its share of total revenue rising from 23 per cent to 26 per cent over the same period. Luxury flats priced above ₹3 crore accounted for 73 per cent of NCR's sales value, despite a modest volume of 25,000 units sold. The Mumbai Metropolitan Region (MMR) followed closely with a 23 per cent revenue share, recording a 9 per cent growth in sales value and 75,000 units sold, with a 16 per cent increase in average ticket size.
In contrast, Hyderabad's revenue market share dropped significantly from 21 per cent in H2 CY'23 to just 16 per cent in H1 CY'25. Meanwhile, on the positive side, the average ticket size of homes sold has increased sharply. The average ticket size climbed from ₹1.13 crore in H2 CY23 to ₹1.42 crore in H1 CY25, the data shows.
In the south, Chennai emerged as a standout performer, achieving a 23 per cent increase in sales value with 11,000 units sold and a 12 per cent rise in average ticket size. New launches in Chennai grew from 14,000 to 19,000 units, though the market share of homes below ₹70 lakh dropped from 23 per cent to 17 per cent. Bengaluru maintained steady growth with a 4 per cent increase in sales value and 30,000 units sold, supported by a 17 per cent rise in ticket size. However, the share of homes priced between ₹70 lakh and ₹1.5 crore declined from 38 per cent to 32 per cent.
Hyderabad, while recording a modest 2 per cent increase in sales value, saw an 11 per cent drop in units sold but a doubling of new launches from 23,000 to 42,000 units, indicating developer optimism despite slower absorption, the report added.
Frequently Asked Questions
What is the percentage decline in new residential project launches in H1 2025 compared to H1 2024?
The number of new residential project launches in H1 2025 declined by nearly 5 per cent compared to H1 2024.
Which region saw the most significant increase in revenue share in the first half of 2025?
The National Capital Region (NCR) saw its revenue share increase from 23 per cent to 26 per cent in the first half of 2025.
How did the average ticket size of homes sold change from H2 2023 to H1 2025?
The average ticket size of homes sold increased from ₹1.13 crore in H2 2023 to ₹1.42 crore in H1 2025.
Which city recorded the highest percentage increase in sales value in the first half of 2025?
Chennai recorded the highest percentage increase in sales value, achieving a 23 per cent increase in the first half of 2025.
What is the significance of the increase in new launches in Hyderabad despite a drop in units sold?
The increase in new launches in Hyderabad, despite a drop in units sold, indicates developer optimism and a willingness to invest in the market despite slower absorption.
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