MUMBAI: On top of a 4% increase in home sales to 5.8 lakh units or worth Rs 4 trillion, in the year gone by, the residential real estate market looks set for brighter days in the new year.
The outlook for 2025 remains optimistic, with over 3.6 lakh units expected to be delivered across major cities. Top developers are working towards completing a pipeline of around 300 million sq. ft. in 2025 Although the growth rate has moderated, signalling a maturing market, demand is well above pre-pandemic levels. Developers, homebuyers, and investors can look forward to another promising year in 2025, according to Square Yards, a portal that tracks property deals.
According to its data, 5.77 lakh residential units were registered in the primary and secondary property markets, which is a 4% increase from 2023 when the volume stood at 5.56 lakh units. In value terms these units commanded a price of over Rs 4.03 trillion, marking a 2% on-year growth over 2023 when it was Rs 3.95 trillion.
This is despite a steep per cent price increase across major markets. In the past five years, prices have soared more than 60% in the top markets, with Gurugram taking the lead. This NCR town has seen a whopping 132% growth in prices since 2019, driven by the increasing demand for luxury and ultra-luxury properties.
The data is based on the sales data from Mumbai & MMR, Bengaluru, Hyderabad, Pune, and Delhi NCR and includes both primary and secondary sales.
According to Tanuj Shori, founder of Square Yards, over the past two to three years, there was an exceptional growth due to the pent-up demand following the pandemic, therefore the moderation in 2024, yet the numbers are well above pre-pandemic averages.
In 2025, we foresee residential demand and supply to grow in close ranges, setting the stage for steady, sustainable progress, he added.
The western region emerged as the dominant force in the property market, with cities like Mumbai, Thane, Navi Mumbai, and Pune accounting for 61% of registered transactions and 69% of value. In the South, Bengaluru and Hyderabad contributed 25% of the total transactions.