Summary of this article
Price growth slowed to 6% in 2025.
Home sales fell 12% year-on-year.
Developers reduced new project launches.
The Indian residential real estate sector witnessed an extraordinary post-pandemic boom over the past few years. Now the market is entering a phase of consolidation. According to a recent data PropTiger housing price growth is now seeing a stagnation across the country’s top eight cities. This surge slowed sharply in 2025, while the residential sales dropped to their lowest levels in three years. This shift, the data said, signalled a cooling-off period for the market, which was driven by changing buyer sentiment, selective project launches and shifting developer focus.
Slowing Price Growth Signals Market Normalisation
Average housing prices across India’s eight major property markets, namely, Mumbai Metropolitan Region (MMR), Delhi-National Capital Region (Delhi-NCR), Bengaluru, Chennai, Hyderabad, Kolkata, Pune and Ahmedabad, rose by 6 per cent in 2025, which is a steep drop from the 17 per cent growth which was recorded in 2024.
This slowdown marked a significant turning point after two years of sharp appreciation, which was driven by rising demand, rising incomes and pandemic-driven housing upgrades that were recognised during lockdowns.
The following cities saw strong moderation:
Mumbai: Price growth fell from 18 per cent to 4 per cent in 2025.
Pune: Growth percentile fell from 16 per cent to just 1 per cent.
Delhi-NCR: From a 49 per cent surge in 2024, prices rose only 6 per cent in 2025.
Ahmedabad: Growth eased to 8 per cent from 10 per cent.
Kolkata: Prices rose 6 per cent from 10 per cent a year earlier.
Chennai: Prices remained flat after a 16 per cent rise in 2024.
This slowdown was not uniform; Bengaluru and Hyderabad bucked the trend. Bengaluru recorded 13 per cent price growth, which was higher than in 2024, while Hyderabad saw a growth to 8 per cent from 3 per cent. There were sharp price jumps in 2023 and 2024, and the market naturally entered a more consolidated phase.
According to a report by Moneycontrol, the affordability concerns have begun to weigh on the buyers, as a result of steep price increases and higher home loan rates. The buyer sentiment has also become more cautious, especially in premium housing segments.
Housing Sales Drop
While the price growth showed signs of slowing down, the more surprising factor was the shift that came in sales activity. India’s residential sales declined by 12 per cent in 2025 to 386,365 units, down from 436,992 units sold in 2024. This marked the lowest annual sales since 2022, the report said. The slowdown was also seen at the quarterly level. Q4 2025 sales fell to 10 per cent year-on-year (y-o-y) to 95,049 units. This was the lowest performance since Q2 2023. This decline indicated that demand was still present but was no longer growing at the rapid pace that was once seen during the post-pandemic surge.
Supply Sentiment In Developers
Developers have also responded to these changes similarly, with new housing supply falling to 6 per cent with new 361,096 units in 2025. This number is the lowest annual level since 2021. This suggested that builders are carefully planning their launches, according to the data. This, PropTiger said, also signalled a calculated approach from the stakeholders, specifically developers of projects. Consumers are more indulgent when it comes to luxury residential investments, and developers are prioritising these high-value projects to pace up the supply, it added.
Looking ahead, the report suggested that a continued price rise is expected, but at a measured pace. City-specific growth will be noticed. Projects in city-specific locations that catered to the lower and middle-income groups are expected to see a significant rise in price and investment from buyers alike. Bengaluru and Hyderabad are expected to continue to outperform due to a strong job market and steady migration in the city. Meanwhile, markets such as Mumbai, Delhi-NCR and Pune are likely to witness a gradual recovery in the coming months, the report further said.
