The residential real estate market saw a temporary slowdown in sales in March and April. The sector saw a drop in sales in both value and volume. However, a report by Nuvama suggests that the key organised developers like Prestige Estate and Brigade Enterprise would see growth in sales.
Here is a closer look at the current state of the real estate market in India and the key factors contributing to the growth of organised developers.
Residential real estate faces temporary slowdown
While the residential real estate industry had a good start in 2025, it slowed down in March and continued in April. The demand for residential real estate fell by 2 per cent in value on both YoY and sequential basis in April. Additionally, the April sales by volume were down by 15 per cent on a YoY basis.
As per the Nuvama report, Hyderabad and Pune saw the biggest decrease in sales by value. In April, the sales in Hyderabad and Pune decreased by 19 per cent and 16 per cent, respectively. While sales in Chennai remained flat, Kolkata also registered a 7 per cent decrease. Bangalore and Delhi NCR are the only two metro cities that posted an increase – 14 per cent and 7 per cent by value, respectively. Municipal sales remained almost flat, with just 1 per cent growth.
New launches dip, inventory holds steady
The slowdown in the housing market has affected the launches of new projects. In April, new project launches went down by 29 per cent YoY in the 7 key metro cities in India. Except for Hyderabad and Kolkata, which saw an increase of 64 per cent and 36 per cent YoY increase, every metropolitan city in India has seen a decrease in new launches in April.
Amid the slowdown in the new project launches, the inventory has remained flat at 17 months in April. Hyderabad has the highest inventory of 26 months, while Pune and NCR remain the best markets with an inventory of 11 to 12 months.
Increasing price
With the increasing housing prices in the seven cities, affordability remains a key concern. On the back of the luxury or premium segment performing well, housing prices have seen an overall increase. In April, prices grew the highest by 20 per cent YoY in Kolkata, followed by Mumbai and Bengaluru with an 18 per cent YoY increase in both cities.
Delhi NCR saw an 11 per cent YoY increase in housing prices. Furthermore, Hyderabad, Chennai, and Pune also registered a 9 per cent, 8 per cent, and 9 per cent, respectively, YoY growth in residential real estate in April.
Why organised developers are still winning?
Despite the slowdown in March and April, 2025 has been a year of growth for the organised real estate companies, says the Navuma report. The report points out that the lower interest rates than the earlier cycle and incentives by the state and central government are among the key factors working for the companies.
Additionally, the increase in the safe harbour limit -the threshold between the stamp duty value and actual transaction value- and demand for larger homes after COVID have also favoured the organised real estate players.
The Navuma research says that, in the long term, with a strong balance sheet and brand recognition, the rise in the capital investment in real estate will further aid the big companies in the housing real estate market.
The report suggests that the sales volume slowdown in the residential market might be coming to an end, and with a good launch pipeline, the organised developers are better prepared to absorb the increase in demand.