Residential Real Estate Market Sees 12% Decline in Sales Across Top Seven Cities: Q1 2025 JLL Report
The residential real estate market in India's top seven cities has witnessed a 12% decline in housing sales in the first quarter of 2025, according to a recent report by JLL. The shift in buyer preferences towards properties priced above ₹1 crore is a key factor driving this trend.
Real EstateHousing SalesPremium PropertiesJllMarket TrendsReal EstateApr 25, 2025
The report, which analyzed the trends and dynamics of the residential market, revealed that the demand for homes priced below ₹1 crore has significantly decreased. This indicates a growing preference for more premium and spacious housing options among Indian homebuyers.
According to JLL, several factors are contributing to this trend. Economic slowdown, changes in government policies, and a shift in consumer behavior are among the key reasons. The economic slowdown has affected the disposable income of potential buyers, leading them to focus on higher-value properties that offer better long-term returns and amenities.
Additionally, the introduction of new policies, such as the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST), has brought more transparency and accountability to the real estate sector. This has instilled greater confidence among buyers, particularly those looking for premium properties.
In terms of city-specific trends, Mumbai and Delhi-NCR have seen the most significant decline in sales. Mumbai, known for its high property prices, has witnessed a 15% drop in sales, while Delhi-NCR has recorded a 14% decline. These cities are characterized by a high demand for premium residential properties, which are often priced above ₹1 crore.
Bangalore, Hyderabad, and Chennai have also experienced a decline, albeit at a slightly lower rate. Bangalore, with its booming IT sector, has seen a 10% decline in sales, while Hyderabad and Chennai have recorded declines of 8% and 7% respectively. These cities are witnessing a growing preference for luxury housing, driven by the increasing number of high-net-worth individuals (HNIs) and young professionals.
Pune and Kolkata, on the other hand, have seen a more modest decline in sales, with Pune recording a 6% decrease and Kolkata a 5% decrease. These cities have a more balanced mix of mid-range and premium properties, which has helped to cushion the impact of the overall market slowdown.
The report also highlights the importance of understanding the changing dynamics of the residential real estate market. Developers are now focusing on creating more premium and luxury housing projects to cater to the evolving preferences of buyers. This includes offering advanced amenities, better infrastructure, and sustainable living options.
Moreover, the trend towards more sustainable and eco-friendly homes is gaining momentum. Buyers are increasingly looking for properties that offer energy-efficient features and a lower carbon footprint. This shift aligns with the broader global trend of sustainable living and is expected to gain further traction in the coming years.
In conclusion, the 12% decline in housing sales across the top seven cities in Q1 2025 reflects a significant shift in the residential real estate market. While the demand for properties priced below ₹1 crore has decreased, there is a growing appetite for premium and luxury housing. Developers and policymakers need to adapt to these changes to ensure the sustained growth and stability of the real estate sector in India.
Frequently Asked Questions
What is the main reason for the decline in housing sales in the top seven cities?
The main reason for the decline in housing sales is a shift in buyer preferences towards premium properties priced above ₹1 crore, driven by economic slowdown, changes in government policies, and a shift in consumer behavior.
Which cities have seen the most significant decline in housing sales?
Mumbai and Delhi-NCR have seen the most significant decline in housing sales, with Mumbai recording a 15% drop and Delhi-NCR a 14% drop.
How are developers adapting to the changing market preferences?
Developers are focusing on creating more premium and luxury housing projects, offering advanced amenities, better infrastructure, and sustainable living options to cater to evolving buyer preferences.
What role do government policies play in the real estate market?
Government policies, such as the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST), have brought more transparency and accountability to the real estate sector, instilling greater confidence among buyers.
What is the trend towards sustainable and eco-friendly homes in the real estate market?
The trend towards sustainable and eco-friendly homes is gaining momentum, with buyers increasingly looking for properties that offer energy-efficient features and a lower carbon footprint.
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