Indian Housing Sales Surge 19% in Q1 FY25 Across Nine Major Cities

India’s residential real estate sector has demonstrated remarkable resilience, posting a 19% year-on-year growth in sales during the April-June quarter. Despite mounting geopolitical tensions in the Middle East and global economic volatility, buyer sentiment remains robust across the country's primary urban hubs.

Robust Sales Growth and Surging New Supply

According to the latest data from PropEquity, housing sales across nine key metropolitan cities climbed to 1,12,458 units in the April-June period, up from 94,864 units during the same period last year. This upward trajectory is accompanied by a massive influx of inventory; new residential supply saw a significant 43% annual increase, reaching 1,17,609 units.

Industry experts suggest that this surge is a clear indicator of sustained consumer confidence. The demand is being driven by a mix of end-users and investors across various price segments, fueled by strong domestic economic fundamentals and supportive policy frameworks.

Southern Markets and Mumbai Lead the Charge

The growth story is largely dominated by Southern India and the Maharashtra region. Bengaluru has emerged as a massive growth engine, with sales jumping to 21,516 units compared to 14,676 units in the previous year. This surge is being attributed to rapid infrastructure expansion and continuous job creation within the tech hub.

Other notable performers include:

  • Hyderabad: Sales rose to 14,410 units from 11,815 units.
  • Navi Mumbai: Witnessed a sharp increase to 11,029 units from 6,833 units.
  • Mumbai: Sales grew to 10,561 units from 8,006 units.
  • Pune: Recorded 18,737 units compared to 17,196 units last year.
  • Chennai: Showed steady growth with 6,323 units sold against 5,354 units previously.

Regional Variations: Softness in NCR and Kolkata

While the aggregate numbers are positive, the market is not experiencing uniform growth. Certain regions have seen a contraction in sales activity. Delhi-NCR recorded a decline, with sales falling to 10,082 units from 11,703 units in the year-ago quarter. Similarly, Kolkata experienced a dip, with sales dropping to 3,414 units from 4,449 units.

Despite these localized slowdowns in Thane (which still saw a marginal rise to 16,386 units) and the NCR region, the overall market sentiment remains largely insulated from external global shocks.

Key Takeaways

  • Strong Growth Metrics: Residential sales rose by 19% to over 1.12 lakh units, while new supply spiked by 43% in the April-June quarter.
  • Regional Leaders: Southern cities, particularly Bengaluru and Hyderabad, continue to lead the national growth narrative driven by employment and infrastructure.
  • Resilience Against Volatility: The Indian housing market has remained largely unaffected by geopolitical uncertainties in the Middle East due to healthy domestic demand.