I. Key Residential Trends: Q1 2025

- “Remarkably High” launches: the launches in Q1 2025 closed at 79,847 units: Bangalore dominating with 20,484 units.

- “Slight Dip” in sales: the sales figure dropped in Q1 2025; 12% Y-o-Y decline recorded

- “Dominant Trio” Mumbai, Bangalore, and Pune dominate the sales figures with 66% of total sales recorded; total 65,246 units sold.

- “Mid luxury is reigning the field”: Apartments above INR 1 crore witnessed 10% Y-o-Y growth in terms of sales; INR 1.5 to 3 crores witness 20% Y-o-Y growth.

- “Affordable is not the trend”: Apartments below INR 1 crore saw a dip of 32% in Q1 2025 compared to Q1 2024.

Figure 1. 

II. Macro-economic highlights: Q1 2025

- India’s economic situation in early 2025 reflects both strength and ongoing challenges. In the third quarter of FY 2024–25, GDP growth at constant prices rose to 6.2% year-on-year, up from a revised 5.6% in the previous quarter. Although this improvement is promising, it still marks the second-lowest growth rate in the past two years, highlighting persistent global headwinds.

- In April, the Reserve Bank of India (RBI) enacted a second straight 25 basis point cut to the repo rate, bringing it down to 6.0%. At the same time, headline inflation fell for the sixth month in a row to 3.2%, remaining below the RBI’s target range for three consecutive months.

- This trend suggests further monetary easing can be announced at the next policy meeting in early June. Looking ahead, India’s economic prospects appear stable, with real GDP growth for FY 2025–26 forecasted at 6.5%.

- Growth is expected to be driven by steady rural demand, a likely recovery in urban consumption, higher government capital spending, and strong service exports, even as global uncertainty persists.

III. Demand Point of View: Q1 2025

Figure 2. 

- The Y-o-Y decline for Q1 2025 was recorded at 12%, close to the recorded Q-o-Q decline of 11%. The decline in the sales activity directs us towards change in buyers’ behaviors, pricing, and economic conditions impacting the housing sector.

- Despite an overall dip in sales, the market saw a 10% year-on-year increase in demand for apartments priced at INR 1 crore and above, which helped cushion the decline.

- Newly launched projects in Q1 2025 accounted for 25% of the total quarterly sales, reflecting a continuing trend fueled largely by trusted developers offering timely project completion and consistent value growth.

- Bengaluru, Mumbai, and Pune dominated the residential real estate sector, contributing around 66% of sales across the top seven cities.

Robust buyer interest in fresh launches across these three cities played a key role in driving overall market performance.

Figure 3.

- The dip in residential sales during Q1 2025 was partially offset by strong growth in the INR 15–30 million and INR 30–50 million price segments, which saw year-on-year demand increases of 22% and 26%, respectively.

- Increased interest in higher-value properties helped mitigate the decline in demand for more affordable homes.

- Market patterns revealed shifting buyer preferences, with demand for homes priced below INR 10 million dropping by 32% Y-o-Y, while sales of properties priced above that threshold rose by 10%, signaling a clear move toward mid-range and premium housing.

- Among key cities, Bengaluru led in sales within the INR 10–15 million bracket, Mumbai topped the INR 15–30 million range, and Pune saw the highest activity in the INR 5.0–7.5 million segments.

Overall, across the top seven cities, the INR 15–30 million category emerged as the dominant segment, accounting for around 24% of total quarterly sales.

III. Supply Point of View: Q1 2025

-  The first-quarter records were healthily broken in Q1 2025 with ~79,847 residential units launched across 7 cities – Mumbai, Bangalore, Pune, Delhi-NCR, Chennai, Hyderabad, and Kolkata.  

- The developers’ acumen in aligning their launches with the demand pattern helped in maintaining the momentum of the residential sector. It also resulted in 8% Q-o-Q growth in launches.

- Tech harboring cities like Bengaluru, Chennai, Hyderabad, and Pune dominated the charts with 64% of Q1 2025 residential launches, catalyzed by the expanding office markets. Bangalore achieved a historic high in this quarter with the highest quarterly launch figures and 62% growth compared to the past year.

Developers are redirecting their development in alignment with the demand scenario.

- They are focusing more on launching between the price range of INR 1 to 5 crores, i.e., upper mid to high-end projects.

- High-end developments witnessed a steady and progressive rise with 107% Y-o-Y growth in INR 1 crore and above project launches; this comes with the fact that this segment experienced a strong sales trend.

- Revised developer strategies have driven a notable surge in premium housing projects, with 44% of Q1 2025 launches priced above INR 15 million.

- The luxury segment (homes priced at INR 30 million and above) saw its share of new quarterly launches double, rising from 8% in Q4 2024 to 16% in Q1 2025.
- Regionally, Bengaluru focused on the INR 15–30 million segment, while Delhi NCR and Hyderabad prioritized the INR 30–50 million range. Pune, on the other hand, led in launches within the INR 10–15 million bracket.

This shift reflects developers’ strategic approach in aligning product offerings with evolving demand and market conditions, fueling renewed growth in the premium housing market.

*Data and excerpts taken from JLL Research.