According to data from Propequity, home sales and launches across the Tier 1 market saw both sequential and annual trends fall in sequential declines in the first quarter of 2025, pointing to a continuous revision in the market, similar to last year’s trends.
Sales fell fourth in the year, with new supply falling by more than a third. Sales fell 13%, and new releases fell 12%. Bengaluru was the only city to see an increase in sales and launches.
February BusinesslinE reported lower home sales and launches in late 2024 compared to the first half.
The cities and regions of study are Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Navi Mumbai, Pune, Thane and Delhi national capital regions.
Propequity founder and CEO Samir Jasuja noted that after three years of strong sales, the housing market had made corrections.
However, firing rate sales have consistently exceeded 100%. Due to delays in sales, inventory has declined sharply, and for future quarters, this poses risks to pre-sales growth.
In a recent memo on this segment, HSBC Securities said that the top-listed developers have already achieved 70% of their FY25 guidance in the first nine months of the year. But “they are lagging behind the guidance and guidance that has become a problem across the sector.”
“This offers cushioning, but due to further delays in launches, we are subject to missed pre-sale as there is little inventory to sell,” he added. At the aggregation level, developers have only achieved 61% of their launch guidance.
Several analysts have commented on peaking in the housing cycle. Traditionally, high supply markets such as Hyderabad, Pune and Thane have significantly reduced the traditionally high supply market.
Sales fell the most in Hyderabad, followed by Mumbai, Pune, Kolkata, Thane, Navi Mumbai and Chennai. The markets that saw the sharpest decline at launches were Kolkata, Mumbai, Thane, Pune and Chennai.
