India's realty sector in 2025 disappointed most developers with sales struggles plaguing all but top players.
Hit by ever-increasing property prices, layoffs in the IT sector, geopolitical tensions, and other uncertainties, the sector reported a sharp dip in housing sales. Real estate consultant firm ANAROCK Research's data indicates that housing sales in India's top 7 cities witnessed a 14% decline in 2025, with approx. 3,95,625 units sold in the year against 4,59,645 units in 2024.
Mumbai Metropolitan Region (MMR) witnessed the highest sales of approximately 1,27,875 units, registering an 18% yearly decline. Pune followed with approximately 65,135 units sold, declining by 20% y-o-y. The two western markets together led residential sales in 2025, comprising a 49% overall share.
Besides Chennai (up 15%), sales declined year-on-year in all the remaining six major markets. Hyderabad (down 23%), Pune (down 20%) and MMR (down 18%) registered sharply decline in sales.
Annually, unsold inventory in the top 7 cities rose 4% by 2025-end, largely because of tapered demand and increased new supply in the year.
Approximately 5.77 lakh units are currently on the primary sales market in these cities. Bengaluru recording a significant 23% increase in unsold inventory.
Year of upheaval
"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.
"The year's trend was of sale volumes stabilising at around 4 lakh units across the top 7 cities, but growth in overall sales value. Our data shows that more than 21% of the new supply was launched in the above Rs 2.5 crore price bracket. Interestingly, the average residential price growth rate has tapered down from double digits in previous years to single digits in 2025," added Puri.
Prices in the top 7 cities collectively rose 8% annually, and only NCR saw double-digit growth at 23%, largely due to a higher new supply of pricier homes. The other major cities recorded single-digit price appreciation, ranging between 4-9% in 2025 as against last year’s 13-27% in 2024.
Out of NCR's total new supply of 61,775 units during the year, over 55% was priced over Rs 2.5 crore. Owing to a constant rise in property prices and better demand for luxury apartments, the overall sales value of housing units saw a 6% yearly jump -- from Rs 5.68 lakh crore in 2024 to over Rs 6 lakh crore in 2025.
Share of costlier homes sold rises
The share of new supply of homes priced more than Rs 2.5 crore in the top 7 cities made up a significant 21% in 2025, as against 18% in 2024. New launches in the top 7 cities saw a 2% annual increase -– from 4,12,520 units in 2024 to 4,19,170 units in 2025.
MMR and Bengaluru saw the maximum new launches, together accounting for almost 48% of the new supply in the year.