Soaring Prices Lead Slow Home Sales by 19%; Supply Shrinks Across 8 Cities

Housing sales declined 19 per cent annually in January-March across eight major cities to 98,095 units on high prices and lower launches, according to PropTiger. Real estate consultant PropTiger, which is part of REA India that also owns Housing.com, on Wednesday, noted that rising property prices and slowing growth forced buyers to exercise caution. In its report 'Real Insight', PropTiger also mentioned that new supply dropped 10 per cent in the first quarter of the calendar year, as developers adjusted with the market situation. In Bengaluru, however, sales rose 13 per cent to 11,731 units from 10,381 units. Chennai too saw an increase of 8 per cent in housing sales to 4,774 units from 4,427 units.

"The huge spike in prices had already started to show its adverse impact on sales. With a global trade war now bringing new uncertainty, it is only natural for buyers to adopt a cautious approach to investment, particularly in something as big as real estate," said Dhruv Agarwala, Group Chief Executive Officer, Housing.com and PropTiger.

According to PropTiger data, only Bengaluru and Chennai recorded an increase in housing sales during January–March 2025, while other major cities saw declines. Ahmedabad witnessed a 17% drop in sales to 10,730 units from 12,915 units. Delhi-NCR saw a 16% fall to 8,477 units, and Hyderabad recorded a sharp 26% decline to 10,647 units. Kolkata had a marginal 1% dip to 3,803 units. The Mumbai Metropolitan Region (MMR) experienced a 26% drop to 30,705 units, and Pune saw a 25% decline to 17,228 units. Overall, new housing supply across these markets fell by 10%, down to 93,144 units from 1,03,020 units. Delhi-NCR includes cities like Gurgaon, Noida, and Faridabad, while MMR covers Mumbai, Navi Mumbai, and Thane.