Real Estate Shift: Housing Supply Dips in India's Major Cities

Housing supply in India's top cities fell by 34% in Q1 2025. While Bengaluru saw growth, cities like Chennai and Mumbai experienced sharp declines. Industry experts cite changing buyer preferences and strategic recalibration by developers as contributing factors.

In a significant development, the housing supply in India's top nine cities has witnessed a sharp decline of 34% during the January-March period this year, according to PropEquity data. This downturn was contrasted by a rise in Bengaluru, which experienced a growth of 17% in new housing units.

While Bengaluru continues to attract both homebuyers and investors, other major cities saw decreases. Chennai's new housing supply dropped by 46%, and Mumbai experienced a 50% decline. The decline is credited to strategic changes by developers, evolving buyer preferences, and economic factors, including increased input costs.

Experts like Anjana Sastri and Ankur Jalan note the enduring demand for luxury developments in Bengaluru and a cautious supply approach in the Delhi-NCR region, driven by robust demand and regulatory shifts. The market dynamics suggest a potential for price increases in high-demand areas despite the current supply constraints.

(With inputs from agencies.)