India's Housing Market 2025: Sales Value Up 6% Despite Volume Dip

The report from real estate services firm ANAROCK showed that sales volumes eased 14 per cent to about 3,95,625 units in 2025 from 4,59,645 units in 2024, as hardening property prices, IT sector layoffs, geopolitical tensions and other uncertainties dented demand.

The Mumbai Metropolitan Region (MMR) recorded the highest sales at approximately 1,27,875 units, down 18 per cent, while Pune sold about 65,135 units, down 20 per cent.

The two markets together led residential sales in 2025, comprising a 49 per cent overall share. Chennai was the only city to post growth in sales volume, surging 15 per cent to about 22,180 units.

"2025 has been a year of broad-spectrum upheaval, including geopolitical turmoil, layoffs in the IT sector, tariff tensions, and other uncertainties," said Anuj Puri, Chairman - ANAROCK Group.

"Sale volumes stabilised at around 4 lakh units across the top 7 cities, but growth in overall sales value. Over 21 per cent of the new supply was launched in the above Rs 2.5 crore price bracket," he said.

Average residential prices across the seven cities rose about 8 per cent to around Rs 9,260 per sq. ft, led by a 23 per cent jump in Delhi‑NCR to about Rs 9,300 per sq. ft., largely due to a higher new supply of pricier homes, the report said.

Out of NCR's total new supply of 61,775 units during the year, over 55 per cent were priced over Rs 2.5 crore.

Interestingly, the average residential price growth rate has tapered down from double digits in previous years to single digits in 2025.

The report noted that the sector's performance in 2026 hinges on rate cuts by the RBI and price control by developers. Repo rate cuts leading to lower home loan interest rates can cause demand to revive significantly, it noted.

- IANS