Soaring Prices Drag Real Estate Down! Delhi NCR Leads The Housing Demand Slump: Report

India’s housing market is showing early signs of buyer hesitation, with residential demand edging up just 0.6 per cent in the first quarter of 2025, even as average property prices jumped 2.8 per cent from the previous quarter and 21.7 per cent year-on-year. That’s according to Magicbricks’ latest PropIndex report, released Monday, covering January to March 2025.

Additionally, according to a report by Anarock, there are 28 per cent in the first quarter of 2025 on a year-on-year (YoY) basis, as reported by Outlook Money earlier this year.

The national average price now stands at Rs 12,829 per square foot, putting pressure on affordability in key metro markets. Overall demand is flat, but major cities like Delhi, Noida, Greater Noida, Gurugram, and Kolkata saw their demand decline significantly. Quarter-on-quarter, Delhi's economy declined the most by 11.9 per cent, followed by Noida's by 12.5 per cent, and Greater Noida's by 10.1 per cent.

Despite the broader slowdown, a few cities continued to buck the trend. Hyderabad led the way with a 7.5 per cent increase in demand this quarter, followed by Bengaluru at 2.7 per cent and Mumbai at 2.3 per cent. Magicbricks suggested these markets benefit from stable employment prospects and better connectivity, which keep buyer interest steady despite rising costs.

In terms of supply, developers appear to be doubling down. Residential listings have surged in several regions, particularly Navi Mumbai, which saw a 34.5 per cent quarter-on-quarter rise. Pune stood at 14.5 per cent and Greater Noida at 9.7 per cent also reported strong inventory growth. This uptick in listings could help cool down prices in the coming months.

Under-construction properties are also gaining traction. Nationwide, the supply of such projects is up nearly 40 per cent compared to the same time last year. Gurugram at 32.25 per cent, Greater Noida at 31.07 per cent, and Bengaluru at 18.46 per cent saw the sharpest increases, reflecting growing builder confidence in long-term market resilience.

Magicbricks, which attracts over 20 million monthly users and hosts 1.5 million active listings, compiled the data through its PropIndex tool, which tracks real-time shifts in residential demand, supply, and pricing trends across India’s top real estate markets.