Realty Review 2025: Residential Depresses; Commercial Remains Resilient

For the Indian real estate sector, there was an uneven growth in 2025 as luxury housing surged at the cost of budget housing amidst rising demand for premium homes. Overall, while residential sales declined, sales value was on an upswing. The commercial real estate, on the other hand, held its ground. Going forward, amid healthy economic fundamentals, the outlook for the sector looks positive.
Vinod Behl

Residential Real Estate

Despite all the hype created around luxury housing, the year 2025 was marked by depleting housing sales. Anarock data points to a 14% drop in sales in 7 top cities to 395625 units in 2025 from 459645 units in 2024. As per PropEquity research, housing sales in the top 9 cities recorded a 16% YoY decline in 2025, a 17-quarter low sales. Even in Tier 2-3 cities, housing sales, according to PropEquity, fell 4% YoY. Anarock has attributed this fall in sales to geopolitical headwinds, including tariff turmoil, job losses in IT sector, and above all, hardening home prices which registered an 8% YoY increase, tapering down from double-digit in previous years.

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