New housing supply in India's top nine cities saw a steep 34% decline, dropping to 80,774 units during January-March 2025, compared to 1,22,365 units in the same period last year. Among the major cities, Bengaluru was the only market to record growth, with new housing supply rising 17% to 20,227 units, up from 17,303 units in Q1 2024. Major Cities See Declining Supply In contrast, other metro cities experienced a significant drop in new housing launches: Mumbai: New supply fell 50% to 6,359 units, down from 12,840 units. Pune: A 48% decline brought new supply to 12,479 units from 24,007 units. Chennai: The supply contracted 46% to 3,946 units, down from 7,259 units. Hyderabad: New launches dropped 38% to 8,773 units, compared to 14,082 units last year. Thane: A sharp 50% decline was recorded, with 11,205 units launched versus 22,595 units in Q1 2024. Delhi-NCR: Supply fell 14% to 10,101 units, down from 11,699 units. Navi Mumbai: The market saw a 24% drop, with 5,810 units launched versus 7,616 units. Kolkata: Recorded the steepest fall at 62%, with supply dropping to 1,874 units from 4,964 units. Market Trends and Expert Insights Despite the decline in overall supply, experts pointed out that certain segments, such as luxury housing and plotted developments, continue to perform well. Bengaluru's real estate market remains resilient due to strong rental yield potential, attracting not just homebuyers but also investors, said Anjana Sastri, Director, Marketing, Sterling Developers. In Delhi-NCR, experts believe the decline in supply reflects a strategic recalibration by developers. Developers are aligning their projects with evolving buyer preferences, said Varun Sharma, Founder & MD, MVN Infrastructure. Developers Taking a Cautious Approach Real estate brokerage firms InvestoXpert, InfraMantra, and V S Realtors attributed the supply drop to a cautious approach by developers amid regulatory shifts and rising input costs. While buyer interest remains strong, constrained new launches are exerting supply-side pressure, potentially driving price appreciation in high-demand micro-markets, said Vishal Raheja, MD, InvestoXpert. Garvit Tiwari, Director, InfraMantra, noted that Delhi-NCR saw nearly 75,000 new units in the past two years, and developers are now adjusting their pipeline to balance demand and inventory. Outlook for the Real Estate Sector With supply tightening in key cities, the Indian housing market may witness increased competition and potential price hikes in sought-after locations. Developers are expected to remain selective in launching new projects, focusing on areas with sustained demand, particularly in the premium and luxury segments.