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India's residential property market recorded a mixed performance last year, with strong demand in southern cities balancing a slowdown elsewhere, according to PropTiger. While overall housing sales across eight major cities fell 12 per cent to about 3.86 lakh units, Bengaluru, Hyderabad and Chennai together saw sales rise 15.5 per cent, crossing 1.33 lakh homes. Chennai led growth with a sharp jump in sales, followed by steady gains in Bengaluru and Hyderabad. Kolkata also reported an increase, while markets such as Mumbai region, Delhi-NCR, Pune and Ahmedabad saw declines. New housing launches dropped to their lowest level since 2021, reflecting a more cautious, supply-disciplined approach by developers aimed at maintaining price stability and avoiding excess inventory.
India's residential property market showed a mixed trend last year, with strong performance in the southern cities offsetting a broader slowdown across major urban centres. Bengaluru, Hyderabad and Chennai together recorded a 15.5 per cent rise in housing sales, crossing 1.33 lakh units, supported by steady demand and improved project launches, according to data released by real estate consultant PropTiger. Advertisement
The consultant, which was acquired last year by Mumbai-based Aurum PropTech, shared figures for primary housing sales across eight major cities. Overall housing sales in these cities declined 12 per cent to 3,86,365 units compared to 4,36,992 units in the previous year. While markets such as Mumbai region, Delhi-NCR, Pune and Ahmedabad saw lower sales, cities in the south and Kolkata reported growth.
Bengaluru posted a 13 per cent rise in housing sales, reaching 54,414 units, up from 48,272 units a year earlier. Chennai recorded the sharpest jump among major cities, with sales increasing 55 per cent to 24,892 units from 16,044 units. Hyderabad also saw an improvement, with sales rising 6 per cent to 54,271 units. Together, these three cities accounted for over one-third of total sales across the eight markets.
Kolkata also showed positive movement, registering a 12 per cent increase in housing sales to 15,172 units. In contrast, the Mumbai region witnessed a significant 26 per cent drop, with sales falling to 1,05,595 units. Delhi-NCR sales declined 13 per cent to 35,711 units, while Pune saw a 12 per cent fall to 59,223 units. Ahmedabad's housing sales also dropped 12 per cent to 37,087 units.
Aurum PropTech's executive leadership indicated that the year reflected a phase of adjustment rather than weakening demand. Buyers continued to remain active but were more cautious, while developers focused on managing supply more carefully. This approach helped prevent inventory build-up and supported price stability despite lower overall volumes.
On the supply side, new housing launches across the eight cities declined 6 per cent to 3,61,096 units. PropTiger noted that this was the lowest annual supply recorded since 2021, pointing to a more measured approach by developers amid changing market conditions.
Source PTI
FAQ
Q1. How did India's housing market perform overall last year?
Housing sales across eight major Indian cities declined by 12 per cent during the year, with total primary sales falling to 3,86,365 units from 4,36,992 units in the previous year, according to PropTiger data. The slowdown was mainly driven by softer demand and fewer transactions in large markets such as the Mumbai region, Delhi-NCR, Pune and Ahmedabad, where buyers turned more cautious amid higher prices and selective new launches.
Q2. Which cities performed better despite the overall decline?
Southern cities emerged as the strongest performers. Bengaluru, Hyderabad and Chennai together recorded a combined 15.5 per cent growth in housing sales, crossing 1.33 lakh units. Their performance stood out in an otherwise subdued market and helped partially offset the decline seen in the western and northern cities.
Q3. What factors supported demand in southern markets?
Demand in southern cities remained steady due to a higher share of end-user buyers, stable employment conditions, and better alignment between supply and actual demand. Developers in these markets followed a more disciplined launch strategy, avoiding excessive inventory build-up and focusing on projects with faster execution and realistic pricing.
Q4. How did individual southern cities perform?
Chennai recorded the highest growth among major cities, with housing sales rising 55 per cent to 24,892 units from 16,044 units a year earlier. Bengaluru posted a 13 per cent increase, with sales climbing to 54,414 units, while Hyderabad registered a 6 per cent rise to 54,271 units. Collectively, these three cities accounted for more than one-third of total housing sales across the eight cities tracked.
Q5. What was the trend in other key housing markets?
Kolkata also saw positive movement, with housing sales increasing 12 per cent to 15,172 units, supported by affordable pricing and steady local demand. In contrast, the Mumbai region witnessed a sharp 26 per cent drop in sales to 1,05,595 units. Delhi-NCR recorded a 13 per cent decline to 35,711 units, Pune saw sales fall 12 per cent to 59,223 units, and Ahmedabad's sales also declined 12 per cent to 37,087 units.
Q6. How did housing supply change during the year?
New housing launches across the eight major cities declined 6 per cent to 3,61,096 units. PropTiger noted that this was the lowest annual supply level since 2021, indicating a cautious approach by developers who focused on clearing existing inventory and launching projects selectively in response to changing market dynamics.
Q7. What does this trend suggest about the broader housing market?
Industry executives described the year as a phase of consolidation rather than a downturn. While overall volumes moderated, buyer interest remained intact, particularly in well-performing markets. Developers focus on supply discipline and measured launches helped maintain price stability and supported the market's longer-term health.
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