Home sales down in first quarter, what is driving NCR market !
Home sales has fell 19% and new launches went 10% down across India’s top 8 real estate destinations, as per reports of Proptiger.com, part of REA India that owns Housing.com. The report mentions rising property cost, global tariff and trade war causing instability in the job market. These real estate destinations include NCR, Ahemdabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and Pune.
According to the data released by the prop-tech firm, in first quarter of 2025 only 8,477 units were being sold in NCR. This is 14% less than sold units in last quarter (Q4) that was 9,808. Not only this, the above figure is 16% less than sold units in first quarter (Q1) of 2024 that is 10,058. Only Bengaluru, 13%, and Chennai, 8%, witnessed a jump in the Q1 2025 in comparison of Q1 2024. Rest of the destinations noticed home sales down from 1 to 26%.
When it comes to new project launches, only 7,952 units have been launched in Q1 of 2025 in NCR. This is 21% less than 10,048 units launched during Q4 of 2024. But this figure has shown jump of 16% in comparison of 2024 when 6,872 units were being launched during January to March. Apart from NCR, only Bengaluru and Kolkata have witness jump of 82 and 138% respectively in home sales. Rest of the destinations have registered home sales down from 10 to 38%.
As per market experts, demand and supply in real estate sector have never been similar. After sharp jump of 2023-24, the real estate sector is going through session of price correction. This could be possible reasons of delay in decision making of home buyers which is absolutely instinctive. Let’s see what real estate experts say about latest real estate trends in 2025:
Dinesh Gupta, Secretary, CREDAI Western UP mentioned that the real estate market always shows variations, which is fine. In 2024, demand and supply were at their peak. After the festival season, we noticed limited new launches because of a fall in demand. Also, this quarter had a better supply than last year, which shows a healthy market trend.
As mentioned by CMD of Nirala World Greater Noida is the only location in NCR which is offering luxury yet pocket friendly property in the ready to move and under construction properties. Also, the location has advantages of rising infrastructure, connectivity and ample opportunities of employment after global investment. Moreover, strict law and order in the district has improved overall sentiments so people have got options of Gurugram and Faridabad which will keep fuelling the demand.
Shaildendra Sharma, Chairman of Renox Group mentioned that new home loans have become more affordable due to low interest rate. Units in newly launched and under-construction projects are more pocket friendly than ready to move projects and moreover, RERA regulations are ensuring successful completion of them. In this scenario, home buyers are preferring new projects and where options are wide and budget is perfectly suitable.
Lt. Col. Ashwani Nagpal (Retd.), CEO of Diligent Builders mentioned that phase of price correction is considered as excellent opportunity for the end users when they can search for unit of their budget and choice across the preferred locations. Home buyers are expecting another cut in repo rate to take a call so this should be treated as positive trends for the coming time.
According to Himanshu Garg, Director, RG Group suggested that supply in real estate sector moves as per demand and 3 & 4 BHK units have been dominating for a long time. As per my experience, if units belong to affordable and mid-affordable segment, the project won’t face any issue in demand because this segment has higher number of home buyers.
