India's Housing Market Faces Slowdown Amid Geopolitical Tensions and Rising Prices

The Indian housing market has witnessed a notable slowdown in Q1 2025, with residential sales plummeting by 28% across the top 7 cities, influenced by increased prices and global geopolitical disturbances. Mumbai and Pune collectively accounted for over half of the sold units, despite a drop in sales.

The Indian residential real estate market has experienced a remarkable slowdown in the first quarter of 2025, according to ANAROCK's latest data. Rising housing prices and global geopolitical tensions are seen as the main culprits, leading to a 28% drop in sales across the top seven cities compared to the same period last year.

This quarter saw approximately 93,280 units sold, a sharp decline from the record-breaking 1.30 lakh units sold in Q1 2024. Anuj Puri, Chairman of ANAROCK Group, noted that while India's economic indicators like GDP growth remain positive, broader factors such as geopolitical unrest have dampened residential market activities.

The Mumbai Metropolitan Region and Pune emerged as the leading markets, comprising 51% of total sales, though both cities reported significant sales declines. At 49%, Hyderabad recorded the greatest annual drop, while Bengaluru showed the smallest decrease at 16%. New residential project launches also saw a 10% reduction, although top cities like MMR and Bengaluru led in new supply, accounting for 52% of launches.

(With inputs from agencies.)