India’s housing market showed signs of softening in November 2025, as both demand and supply weakened on a year-on-year basis, reinforcing views that the sector has entered a mid-cycle phase rather than an outright slowdown.
Housing sales by value declined 2% year-on-year in November, remaining flat compared to October despite a festive-season boost in the previous month. Sales volumes, however, rose 3% month-on-month, suggesting early signs of recovery in the affordable housing segment. On an annual basis, volumes were still down 4%.
For the year so far (CY25), housing sales by value are up 6% year-on-year, driven largely by strong demand in Kolkata, the National Capital Region (NCR), Chennai and Bengaluru, where sales have risen between 23% and 27%. This contrasts with a decline of 4–9% in Hyderabad and Maharashtra’s key markets—Mumbai Metropolitan Region (MMR) and Pune—highlighting regional divergence.
On the supply side, new launches by value fell sharply, declining 31% year-on-year and 22% month-on-month in November. Year-to-date launches are down 4%, with supply contracting most notably in MMR, Pune and the NCR. Southern cities offered some relief, with Chennai leading a 35% year-on-year rise in launches, followed by Hyderabad and Bengaluru.
Despite weaker supply and demand, unsold inventory levels remain comfortable at around 18 months nationally. NCR, Pune and Bengaluru are among the healthiest markets, while Hyderabad continues to face elevated inventory at 27 months. Stable inventories have allowed developers to raise prices, particularly in premium segments. Prices rose as much as 17% year-on-year in MMR and 12% in Bengaluru and Kolkata, although NCR saw a sharp price correction.
Looking ahead, affordability remains a growing concern. Weak volume growth, limited mid-income housing supply, and uncertain job creation amid global economic pressures could keep the sector volatile. Analysts expect housing stocks to remain range-bound, with lower mortgage rates supporting demand even as valuation and volume growth concerns cap upside.
