India's Realty Market Recalibrates: Sales Cool, Supply Tightens, Prices Hold Firm in 2025

• India's residential real estate market saw a moderation in 2025, with sales declining 12% year-on-year across top eight cities to 3,86,365 units, down from 4,36,992 units in 2024, according to PropTiger.com.
• New launches fell 6% to 3,61,096 units, the lowest annual supply addition since 2021, indicating developers' disciplined approach to avoid inventory build-up.
• Despite softer volumes, residential prices remained firm due to tight ready inventory, calibrated new launches, and elevated construction costs, preventing aggressive discounting.
• Southern cities like Chennai, Hyderabad, and Bengaluru outperformed, showing strong sales growth, while Mumbai, Pune, and Delhi-NCR experienced more pronounced corrections.
• The market is transitioning to a more mature, execution-led phase with selective buyers and cautious developers, focusing on project quality and long-term value.

Why It Matters: India's housing market in 2025 saw recalibration with cooling sales and tight supply, yet prices remained firm.