Indian Housing Market Faces Turbulence Amid Geopolitical Challenges in Q1 2025

The Indian housing market experienced a significant slowdown in Q1 2025, with sales dropping by 28% due to rising prices and geopolitical tensions. New launches also saw a decline, while the overall economic outlook remains positive.

The Indian residential housing market hit a speed bump in Q1 2025, as skyrocketing prices and geopolitical uncertainties curtailed what was a bullish trend. According to ANAROCK data, top seven cities saw a 28% drop in sales compared to Q1 2024.

Approximately 93,280 units were sold in these urban centers, a significant decline from the record high of over 130,000 units in Q1 2024. While the country's GDP growth rate is robust, global tensions have influenced market activities adversely, said ANAROCK Chairman Anuj Puri.

The Mumbai Metropolitan Region (MMR) and Pune led in sales, accounting for 51% of transactions. However, both regions saw substantial declines, with MMR sales down by 26% and Pune over 30% year-on-year. Notably, Hyderabad experienced the steepest annual drop at 49%, as per Puri's insights.

New launches remained above 100,000 units but declined by 10% year-on-year from 110,865 in Q1 2024 to approximately 100,020 in Q1 2025. MMR and Bengaluru contributed to 52% of new launches, with MMR launches slightly dropping by 9% annually and Bengaluru seeing a 27% increase in new supply.

Despite new launches nearing last year's levels, unsold inventory decreased by 4% to roughly 559,810 units by the end of Q1 2025. Pune showed the largest annual reduction of 16% in available stock, while Bengaluru's unsold inventory increased significantly by 28%, reaching 58,660 units.

Across the top cities, new launch statistics showed MMR adding 30,755 units, a 9% dip from Q1 2024, with a focus on the sub-Rs 80 lakh budget segment. In contrast, Bengaluru added 20,855 new units, marking a 27% annual increase, dominated by the luxury segment above Rs 1.5 Crore.

Other cities revealed varying dynamics; Pune's new supply was predominantly in the mid- to premium-range, while the National Capital Region saw a 53% surge in ultra-luxury segment launches. Hyderabad and Chennai faced considerable declines, underscoring the market's volatility amid economic uncertainties.

(With inputs from agencies.)