Luxury Boom Hides Realty Slump: India's Housing Market Sees Paradoxical 2025

• India's residential real estate saw a 14% sales volume drop (395,625 units) in 2025, but total sales value rose 6% to over Rs 6 lakh crore, driven by luxury housing.
• Luxury housing (properties > Rs 2.5 crore) accounted for 21% of new supply, while affordable housing (< Rs 50 lakh) sales plummeted 17% and new launches dropped 28%.
• Sales slowdown factors include hardening property prices (8% annual rise, NCR 23%), IT sector layoffs, poor equity markets, and geopolitical uncertainties.
• Greater Mumbai and Pune dominated sales (49% of total), despite an 18% and 20% decline respectively. New launches marginally increased by 2%.
• Private equity investment in real estate declined 29% to $3.5 billion in 2025 but is projected to rebound 28% to $4.4 billion in 2026.

Why It Matters: India's 2025 realty market saw a volume-value paradox, with luxury thriving amidst an affordable housing crisis.