**India’s Residential Real Estate Sector Sees Decline in New Launches**
India’s residential real estate market is experiencing a notable slowdown in new project launches. In the first half of 2025, approximately 2.6 lakh housing units were introduced, a decrease from around 3 lakh units during the same period in 2024, reflecting a decline of nearly 5%. This trend indicates a more cautious stance among developers as they navigate changing market conditions.
According to a report by the Confederation of Real Estate Developers’ Associations of India, in collaboration with CRE Matrix, the decline in unit launches—from about 3 lakh in H1 2024 to 2.6 lakh in H1 2025—highlights the industry’s shifting dynamics. Despite this slowdown in new launches, the overall housing sales in Tier 1 cities across India reached approximately ₹3.6 lakh crore, marking a 9% increase from ₹3.3 lakh crore in the same period last year.
The July edition of CREDAI’s India Housing Report reveals that the National Capital Region (NCR) has strengthened its position, increasing its share of total revenue from 23% to 26%. Notably, luxury flats priced above ₹3 crore constituted 73% of NCR’s sales value, despite a modest volume of 25,000 units sold. The Mumbai Metropolitan Region closely followed, capturing a 23% revenue share with a 9% growth in sales value and 75,000 units sold, alongside a 16% increase in average ticket size.
Conversely, Hyderabad’s market share saw a significant drop from 21% in H2 2023 to just 16% in H1 2025. On a positive note, the average ticket size of homes sold has surged, rising from ₹1.13 crore in H2 2023 to ₹1.42 crore in H1 2025.
In the southern region, Chennai emerged as a standout performer, achieving a 23% increase in sales value with 11,000 units sold and a 12% rise in average ticket size. New launches in Chennai grew from 14,000 to 19,000 units, although the market share of homes priced below ₹70 lakh decreased from 23% to 17%. Bengaluru also maintained steady growth, with a 4% increase in sales value and 30,000 units sold, supported by a 17% rise in ticket size. However, the share of homes priced between ₹70 lakh and ₹1.5 crore fell from 38% to 32%.
Despite a modest 2% increase in sales value, Hyderabad experienced an 11% drop in units sold but saw new launches double from 23,000 to 42,000 units, indicating developer optimism despite slower absorption rates.
In conclusion, while the residential real estate sector in India faces challenges with declining new project launches, certain markets like NCR and Chennai are showing resilience and growth in sales value, suggesting a complex but evolving landscape for developers and buyers alike.
**FAQ**
**Q: What factors are contributing to the slowdown in new residential project launches in India?**
A: The slowdown in new residential project launches in India is primarily due to developers adopting a more cautious approach amid changing market dynamics and economic conditions.
