Residential property sales declined in Q3 2024 across India’s top cities, with Hyderabad recording the highest drop at 49 per cent Mumbai Metropolitan Region (MMR) and Pune accounted for 51 per cent of total sales but saw sharp declines.
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India's housing market saw a significant downturn in Q1 2024, with residential property sales across the top seven cities dropping 23 per cent year-on-year. According to a report by ANAROCK Group, a total of 99,500 units were sold during this period, down from 128,000 units in Q1 2023.
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Market Overview The first quarter of 2025 demonstrated resilience in India's housing market, with increasing demand for mid-segment and premium homes. While metro cities continued to dominate, tier-2 and tier-3 cities exhibited a sharp rise in home purchases, driven by affordability and improved infrastructure.
Key trends
Price appreciation in Metro cities
Mumbai, Delhi-NCR, and Bengaluru recorded price hikes of 5-8 per cent quarter-on-quarter.
Premium housing in prime locations saw the highest demand, particularly in newly launched projects.
Tier-2 & Tier-3 cities on the rise
Cities like Pune, Ahmedabad, and Indore experienced 10-15 per cent growth in residential demand.
Lower property costs and expanding job markets have made these locations attractive for homebuyers.
Increase in luxury housing demand
The ultra-luxury segment (properties above INR 5 crore) surged by 12 per cent in major metros.
HNIs and NRIs played a key role in driving luxury home purchases.
Affordable housing shows steady growth
Despite rising costs, the demand for homes in the INR 40-70 lakh range remained stable.
Government incentives and subsidies under PMAY (Pradhan Mantri Awas Yojana) continued to support first-time buyers.
Rental market boom
Rental yields increased by 8-10 per cent in IT hubs like Hyderabad, Bengaluru, and Pune.
Demand for co-living and furnished rental homes has surged among young professionals.
Regional market performance
Mumbai: Witnessed the highest sales in the luxury segment, particularly in South Mumbai and Bandra.
Delhi-NCR: Strong demand in Noida and Gurugram, with a focus on integrated townships.
Bengaluru: Tech-driven housing demand remained strong, especially in Whitefield and Electronic City.
Chennai: Growth in mid-segment housing, with OMR and ECR being prime locations.
Pune: Emerging as a preferred investment destination with 10 per cent annualized price appreciation.
Anuj Puri, Chairman - ANAROCK Group, says, "MMR and Pune accounted for 51 per cent of the total sales, with MMR seeing a 26 per cent yearly drop and Pune a decline of over 30 per cent. At 49 per cent , Hyderabad saw the highest annual drop in sales, while Bengaluru had the lowest decline at 16 per cent."
The decline has been attributed to a combination of rising property prices, higher home loan interest rates, and a slowdown in new launches. Mumbai Metropolitan Region (MMR) and Pune, which together contributed over half of the total sales, saw a sharp decline of 26 per cent and over 30 per cent, respectively. Hyderabad recorded the steepest fall at 49 per cent, while Bengaluru reported the lowest drop at 16 per cent.
Challenges & opportunities
Challenges: Rising construction costs, interest rate fluctuations, and delayed project deliveries.
Opportunities: Government incentives, evolving smart city projects, and rapid digitalisation of real estate transactions.
Q1 2025 reaffirmed India's real estate resilience, with strong demand across various segments. While affordability remains a key concern, the market’s expansion into tier-2 and tier-3 cities presents new growth avenues. As policies continue to evolve and infrastructure develops, the upcoming quarters are expected to sustain this positive momentum.
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