India’s residential real estate market moved into a phase of normalisation in 2025, with housing sales moderating from elevated levels even as prices stayed firm, reflecting a more disciplined and resilient market structure, according to a report by digital real estate transaction and advisory platform PropTiger.Across the top eight cities, all-India residential sales declined 12% year-on-year to 3,86,365 units in 2025 from 4,36,992 units in 2024, marking the lowest annual sales volume since 2022, ANI reported. New residential supply also moderated, falling 6% to 3,61,096 units from 3,85,221 units a year earlier, the lowest level of new launches since 2021, the report said.The slowdown was also visible at a quarterly level. In the October–December quarter of 2025, housing sales fell 10% year-on-year and 0.5% quarter-on-quarter to 95,049 units, the weakest quarterly performance since the April–June quarter of 2023.“2025 was not a year of demand destruction, but one of recalibration. Buyers remained active but more deliberate, while developers responded with disciplined supply management. This prevented inventory stress and helped prices remain resilient despite softer volumes,” said Onkar Shetye, Executive Director, Aurum PropTech.City-wise performance showed widening divergence through the year. Hyderabad and Chennai emerged as consistent outperformers, supported by sustained quarterly and annual growth. Chennai recorded a sharp 55% rise in annual sales to 24,892 units, while Hyderabad posted a 6% increase to 54,271 units. In contrast, Mumbai and Pune saw steep annual declines of 26% and 27%, respectively.Delhi-NCR remained the only major market to register year-on-year sales declines across all four quarters of 2025, indicating a prolonged phase of consolidation, the report noted.On the supply side, new residential launches across the eight cities rose 4% year-on-year and 0.2% quarter-on-quarter in the December quarter to 92,007 units. However, for the full year, total supply additions were down 6% compared with 2024, underscoring developers’ cautious approach amid moderating demand.Despite lower transaction volumes, residential prices continued to edge higher across key markets, as developers largely avoided aggressive discounting and maintained pricing discipline, the report said.“The housing market is transitioning into a more mature, execution-led phase,” Shetye added. “Growth in 2026 is likely to be driven by affordability, infrastructure-led micro-markets, and city-specific fundamentals rather than broad-based acceleration.”
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