Average residential property prices in seven cities increased 10% to 34% due to new supplies in the luxury and ultra-luxury segments and overall demand.
Housing sales in the first quarter of 2025 (Q1 2025) in India's top seven Indian cities fell by 28 per cent from the year before as increasing prices and geopolitical headwinds pulled down the market's bull run, said a report on Thursday.
Some 93,280 units were sold in Q1 2025 (January-March) and 130,170 in the same period the year before, according to Anarock.
The real estate consultancy tracked housing sales in the Mumbai Metropolitan Region (MMR), Bengaluru, Pune, the National Capital Region (NCR), Hyderabad, Chennai, and Kolkata.
Average residential property prices in the seven cities increased 10 per cent to 34 per cent in Q1 2025 due to new supplies in the luxury and ultra-luxury segments and overall demand, the report said.
NCR and Bengaluru recorded the highest annual price jumps of more than 34 per cent and 20 per cent.
"MMR and Pune accounted for 51 per cent of the total sales, with MMR seeing a 26 per cent yearly drop and Pune a decline of over 30 per cent.
"At 49 per cent, Hyderabad saw the highest annual drop in sales, while Bengaluru had the lowest decline at 16 per cent," said Anuj Puri, chairman - Anarock Group.
New launches across the seven cities were above the 100,000 mark but saw a 10 per cent yearly decline: From approximately 110,865 units in Q1 2024 to about 100,020 units in Q1 2025.
"Notably, MMR and Bengaluru saw the maximum new supply in Q1 2025, accounting for 52 per cent of the total new launches across the top seven cities," said Puri.
New housing supply grew 53 per cent, 27 per cent, and 26 per cent in NCR, Bengaluru and Kolkata, respectively. It declined 55 per cent in Hyderabad, the most among the seven cities, and 9 per cent in MMR.
Unsold inventory dropped by 4 per cent: From about 580,890 units by Q1 2024 to 559,810 units by Q1 2025.
Pune saw the highest decline, of 16 per cent, in its available stock in Q1 2025.
Bengaluru saw its unsold stock rise by 28 per cent to around 58,660 units.
"However, rising housing prices and global headwinds like ongoing geopolitical tensions and a weak global economy, have taken their toll on India's residential market activity," said Puri.
"These factors cascaded down into the housing market in Q1 2025."
Feature Presentation: Ashish Narsale/Rediff.com
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