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India’s 2025 Housing Market Splits: Sales Fall 14% as Premium-Driven Values Rise 6%

Consultants say a 2026 demand revival hinges on RBI rate cuts and restrained pricing.

Overview

  • Regional performance diverged, with Mumbai Metropolitan Region selling about 127,875 homes (down 18%) and Pune about 65,135 (down 20%), while Chennai was the lone gainer with sales up 15% to roughly 22,180 units.
  • Average prices across the top seven cities rose about 8% to around ₹9,260 per sq ft, led by a 23% jump in Delhi‑NCR tied to a larger share of higher‑priced launches.
  • Premium under‑construction homes saw the sharpest gains, with prices up to 36% year on year, led by Noida, Mumbai up 20–30%, Gurugram up 2–19% and Bengaluru up 13–15%, according to Savills India.
  • New supply stayed near 4.19 lakh units as developers tilted upmarket, with more than 21% of launches priced above ₹2.5 crore and NCR showing the heaviest premium skew.
  • Unsold inventory inched up about 4% to roughly 5.77 lakh units, with Bengaluru posting a 23% rise, as brokerages frame the market as mid‑cycle and expect selective recovery dependent on cheaper mortgages and disciplined supply.