Housing sales fall 14% in 2025 amid sky-high prices, IT layoffs: ANAROCK Research

Housing sales in the top seven cities witnessed a 14% year-on-year decline in 2025, with around 395,625 units sold in the year against 459,645 in 2024, according to ANAROCK Research.

Hardening property prices, layoffs in the IT sector, geopolitical tensions and other uncertainties dented residential growth momentum, the real estate consultancy says.

However, the overall sales value of housing units saw a 6% jump — from around Rs 5.68 lakh crore in 2024 to over Rs 6 lakh crore in 2025.

“2025 has been a year of broad-spectrum upheaval including geopolitical turmoil, layoffs in the IT sector, tariff tensions and other uncertainties,” said Anuj Puri, Chairman, ANAROCK Group.

Delhi NCR recorded sales of 57,220 units in 2025, a decline of 8% YoY. Bengaluru too saw a decline of 5%, with 62,205 units sold. In MMR, housing sales declined a steep 18%. Hyderabad saw a bigger 23% decline at 44,885 units. In Pune, 65,135 units were sold, which was a yearly decline of 20%. Kolkata recorded sales of 16,125 units, a dip of 12%. Chennai was the only major city to witness a jump of 15%.

As a result, the average rate of residential price rise moderated from double digits in previous years to single digits in 2025, adds Puri. “Prices in the top 7 cities collectively rose 8% annually, and only NCR saw double-digit growth at 23% — largely due to a higher new supply of pricier homes. Out of NCR’s total new supply of 61,775 units during the year, over 55% was priced over Rs 2.5 crore.”

Developers focused on high value premium and luxury homes. More than 21% of the new supply was in the above Rs 2.5 crore price bracket, shows ANAROCK data.

Both the demand for and supply of luxury housing rose in 2025 — the post-pandemic trend toward bigger, better homes by branded developers continues. There is every reason to expect this trend to endure in 2026, says Puri.

The real estate industry’s performance in 2026 hinges on several key factors, most notably rate cuts by the RBI and price control by developers, believes Puri. “Amid the currently favourable economic outlook, further repo rate cuts leading to lower home loan interest rates can cause demand to revive significantly,” he says.

Annually, unsold inventory in the top 7 cities rose 4% by 2025-end, largely because of tepid demand and increased new supply in the year, shows ANAROCK data. Around 5.77 lakh units are currently on the primary sales market in these cities.