Housing market steady in Q2 2025: Delhi-NCR leads in price growth, Mumbai & Pune see reduced inventory
In Greater Mumbai, sales outpaced new launches (11,173 vs 9,515), pushing the per sq. ft. rate to Rs 33,272, the highest among metros. By contrast, Delhi NCR recorded a surge in launches, nearly doubling to 22,001 units, while sales rebounded to 14,464.
- Aug 19, 2025,
- Updated Aug 19, 2025 4:09 PM IST
India’s housing market maintained its momentum in the second quarter of 2025, with total sales across the top eight cities clocking Rs 1.62 lakh crore, according to data from CRE Matrix and 1 Finance Research. The 1 Finance Housing Total Return Index rose to 255, marking a 17% year-on-year increase and a 60% five-year return, highlighting the sector’s resilience.
Beneath the robust headline numbers, the market continues to be end-user driven, ensuring stability and reducing speculative froth. The report highlighted that Greater Mumbai and Pune are witnessing inventory tightening, while Delhi NCR is leading the pack in capital appreciation.
In Greater Mumbai, sales outpaced new launches (11,173 vs 9,515), pushing the per sq. ft. rate to Rs 33,272, the highest among metros. Pune too absorbed a high supply quarter with 19,179 unit sales against 21,597 launches, leaving unsold inventory at 2.75 lakh units. Together, these two markets are showing signs of tightening supply amid steady demand.
By contrast, Delhi NCR recorded a surge in launches, nearly doubling to 22,001 units, while sales rebounded to 14,464. The region’s per sq. ft. rate held at Rs 16,405, with capital growth outperforming other cities. However, inventory overhang varied sharply—from 9 months in Gurugram to 56 months in Noida—indicating a two-speed market.
Other metros displayed mixed trends. Thane saw a supply surge (22,894 launches) far outpacing absorption (12,860 sales), leaving unsold stock at 3.46 lakh units. Hyderabad and Bengaluru remained relatively balanced, though new launches nudged inventory levels higher. Chennai, however, posted the steepest increase in inventory overhang, climbing to 25 months from 15 last year, despite average rates rising to Rs 8,708 per sq. ft. Kolkata, on the other hand, remained affordability-driven, with sales (4,994) exceeding new launches (3,590) at an average rate of Rs 7,574 per sq. ft.
Commenting on the data, Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, said: “Real buyers are driving a steady market. Mumbai and Pune are tightening on supply, NCR is leading price gains, and Bengaluru’s demand is anchored in family-sized homes. Don’t chase headlines—get deal-ready. Focus on execution-proven, infrastructure-adjacent projects, match EMIs to stable cash flows, and negotiate stage-linked terms.”
Looking ahead, the report expects growth to sustain in the near term, supported by strong end-user demand, disciplined project pipelines, and healthier balance sheets among developers. While inventory levels remain elevated in some markets, the broader cycle is anchored in fundamentals rather than speculation.
Net-net, the housing market continues to offer stability and long-term returns, with performance hinging more on execution quality, micro-market selection, and infrastructure linkages than on broad-based price inflation.
India’s housing market maintained its momentum in the second quarter of 2025, with total sales across the top eight cities clocking Rs 1.62 lakh crore, according to data from CRE Matrix and 1 Finance Research. The 1 Finance Housing Total Return Index rose to 255, marking a 17% year-on-year increase and a 60% five-year return, highlighting the sector’s resilience.
Beneath the robust headline numbers, the market continues to be end-user driven, ensuring stability and reducing speculative froth. The report highlighted that Greater Mumbai and Pune are witnessing inventory tightening, while Delhi NCR is leading the pack in capital appreciation.
In Greater Mumbai, sales outpaced new launches (11,173 vs 9,515), pushing the per sq. ft. rate to Rs 33,272, the highest among metros. Pune too absorbed a high supply quarter with 19,179 unit sales against 21,597 launches, leaving unsold inventory at 2.75 lakh units. Together, these two markets are showing signs of tightening supply amid steady demand.
By contrast, Delhi NCR recorded a surge in launches, nearly doubling to 22,001 units, while sales rebounded to 14,464. The region’s per sq. ft. rate held at Rs 16,405, with capital growth outperforming other cities. However, inventory overhang varied sharply—from 9 months in Gurugram to 56 months in Noida—indicating a two-speed market.
Other metros displayed mixed trends. Thane saw a supply surge (22,894 launches) far outpacing absorption (12,860 sales), leaving unsold stock at 3.46 lakh units. Hyderabad and Bengaluru remained relatively balanced, though new launches nudged inventory levels higher. Chennai, however, posted the steepest increase in inventory overhang, climbing to 25 months from 15 last year, despite average rates rising to Rs 8,708 per sq. ft. Kolkata, on the other hand, remained affordability-driven, with sales (4,994) exceeding new launches (3,590) at an average rate of Rs 7,574 per sq. ft.
Commenting on the data, Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, said: “Real buyers are driving a steady market. Mumbai and Pune are tightening on supply, NCR is leading price gains, and Bengaluru’s demand is anchored in family-sized homes. Don’t chase headlines—get deal-ready. Focus on execution-proven, infrastructure-adjacent projects, match EMIs to stable cash flows, and negotiate stage-linked terms.”
Looking ahead, the report expects growth to sustain in the near term, supported by strong end-user demand, disciplined project pipelines, and healthier balance sheets among developers. While inventory levels remain elevated in some markets, the broader cycle is anchored in fundamentals rather than speculation.
Net-net, the housing market continues to offer stability and long-term returns, with performance hinging more on execution quality, micro-market selection, and infrastructure linkages than on broad-based price inflation.