India's housing market sales drop 23% in Q1

India's housing market is experiencing a downturn in early 2025. Sales in nine major cities have dropped by 23%, according to a report from PropEquity. At the same time, fresh supply of housing units has increased by 34%. Over 80,000 new housing units were launched in the first three months of this year. This marks a significant decrease, as it is the third straight quarter with fewer than 100,000 units launched. Most cities are seeing a decline in sales, but Delhi NCR and Bengaluru are exceptions, with a 10% increase in sales in those areas. Bengaluru has performed particularly well, showing a 17% rise in new launches, which accounts for 25% of all launches in these cities. In contrast, regions like Hyderabad, Pune, and Thane have seen a combined decline of 29% in new supply compared to the same period last year. Samir Jasuja from PropEquity pointed out that the market seems to be correcting itself after three years of record growth. Rising home prices and cautious investors are contributing to this trend. Despite these challenges, the absorption-to-supply ratio remains healthy at 131%, indicating ongoing demand. Experts believe that as economic conditions change, developers might adjust their strategies. Even with the slow down, some cities remain strong, and the market is expected to stabilize as it adapts to new economic realities.