India’s housing market has witnessed a notable slowdown in Q4 2025, with sales across the country’s nine major cities dropping 16% year-on-year (YoY). New launches also fell 10% during the same period, according to a report by NSE-listed real estate analytics firm PropEquity. Only Delhi-NCR and Navi Mumbai recorded growth in both sales and new launches, on both annual (YoY) and quarterly (QoQ) bases.
Sales Decline Across Most Cities
During the fourth quarter, housing sales in the top nine cities fell to 98,019 units, marking the lowest quarterly sales since Q3 2021. Apart from Delhi-NCR (up 4%) and Navi Mumbai (up 13%), the remaining seven cities witnessed a decline of up to 31%. On a quarterly basis, sales dropped 2% QoQ.
Why the Drop Despite the Festival Season?
PropEquity Founder & CEO Sameer Jasooja explained, “Traditionally, October–December is considered the festival season and is expected to boost real estate sales along with new project launches. However, the current decline reflects a trend toward premiumization, where higher-value properties are being launched. While volumes have decreased, total market value has continued to rise—a trend observed since 2024.”
Volumes Down, Values Up
Jasooja highlighted that in 2023, approximately 481,000 units were launched, valued at ₹6.3 lakh crore. In contrast, 2024 saw only 411,000 units launched—a decline of roughly 70,000 units—but the total value rose to ₹6.8 lakh crore, driven by a shift toward higher-priced segments.
New Launches in Q4 2025
Q4 2025 witnessed 88,427 new launches, down 10% YoY. Only Delhi-NCR (up 29%), Navi Mumbai (up 15%), and Chennai (up 9%) saw an increase in supply, while the other six cities recorded a drop of up to 30%. On a quarterly basis, new launches fell 4% QoQ.
Outlook for 2026
Looking ahead, Jasooja stated, “The low base of 2025 provides a more positive outlook. Funds raised by developers in 2025 are expected to translate into new project launches in 2026. The market still holds strong growth potential. With better transmission of the 125-basis-point repo rate cut by banks, home loan rates may fall, further supporting demand. The government’s proactive stance also remains a significant positive factor.”
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