New Housing Supply Drops 34% in India’s Top-9 Cities

31 Mar 2025 CW Team

India’s residential real estate market experienced a 34% decline in new housing supply during the January-March 2025 period, with only 80,774 units launched, compared to 1,22,365 units in the same period last year, according to data from PropEquity.

Among the top nine cities, Bengaluru was the only market to record an increase, with new housing supply rising 17% to 20,227 units, up from 17,303 in the year-ago period. In contrast, other major cities witnessed a significant decline. Chennai saw a 46% drop to 3,946 units, while Hyderabad recorded a 38% decline to 8,773 units. Kolkata was among the worst hit, with a 62% decrease, bringing supply down to 1,874 units from 4,964 last year.

The Mumbai Metropolitan Region (MMR) also saw a sharp contraction in new launches. Mumbai registered a 50% decline to 6,359 units, while Navi Mumbai saw a 24% dip to 5,810 units. Similarly, Pune’s new housing supply fell 48% to 12,479 units, and Thane saw a 50% drop to 11,205 units. Meanwhile, Delhi-NCR recorded a relatively modest 14% decline, with 10,101 units launched, compared to 11,699 in the previous year.

This slowdown in new supply could be attributed to regulatory changes, market corrections, and cautious investor sentiment. Developers are likely recalibrating their strategies in response to evolving demand dynamics, and the coming quarters will determine whether supply rebounds to match market needs."

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