NEW DELHI: Despite repo rate cuts and income tax rebates in this year’s union budget, India’s real estate sector is ending calendar year 2025 on a low note. As per early estimates, housing sales in India’s top 9 cities fell to 98,019 units in Q4 2025 (October-December) registering 16% year-on-year decline. This is the lowest quarterly sales recorded since Q3 2021, according to real estate data analytics firm PropEquity.
Except for Navi Mumbai and Delhi-NCR, which saw 13% and 4% growth in sales respectively in Q4 2025, all 7 cities saw a decline in sales. Sales fell sharpest by 31% to 17,762 units in Pune, followed by 26% decline in Thane and 25% slump in Mumbai.
“Traditionally, the October-December period records strong sales momentum and new launches driven by the festive season. However, the recent decline reflects a shift toward premiumisation in the market, as evidenced by value growth despite a contraction in volumes. This trend has been continuing from 2024,” said Samir Jasuja, Founder & CEO, PropEquitysaid.
Jasuja explained that for instance, in 2023, approximately 4.81 lakh units were launched with a total value of Rs 6.3 lakh crore. In contrast, 2024 saw the launch of 4.11 lakh units - around 70,000 fewer units - yet with a higher aggregate value of Rs 6.8 lakh crore.
Industry insiders stated that there is a dearth of buyers in the affordable and mid-income segment and it is only the elite sector that is driving sales. Promoter of the Delhi NCR-based real estate firm said that there is no intention or willingness among developers to launch affordable properties.
“Further, a delay by commercial banks to lower interest rates and a sharp appreciation in property prices is having an impact on total volumes. This trend will likely continue in 2026,” the promoter said while requesting anonymity.
Jasuja said that significant funds raised by developers in 2025 are expected to translate into increased project launches in 2026. He added that improved transmission by banks of the cumulative 125 bps repo rate reduction could lead to lower home loan rates, further supporting demand.