South Indian Cities Lead Housing Market Recovery with 15% Sales Growth in 2025
South Indian cities led India's housing market in 2025, with Bengaluru, Hyderabad, and Chennai recording 15% collective sales growth to 1.33 lakh units. Chennai showed exceptional 55% growth while overall eight-city sales declined 12% to 3.86 lakh units. Mumbai, Delhi-NCR, Pune, and Ahmedabad experienced declining sales, while new supply dropped 6% to its lowest level since 2021, reflecting disciplined market management.
*this image is generated using AI for illustrative purposes only.
India's housing market in 2025 presented a tale of regional contrasts, with South Indian cities emerging as clear winners while other major markets faced headwinds. According to data released by real estate consultant PropTiger, Bengaluru, Hyderabad, and Chennai collectively recorded a robust 15% increase in housing sales, reaching over 1.33 lakh units during the year.
South Indian Cities Drive Market Growth
The three southern metropolitan areas demonstrated remarkable resilience and growth in 2025. The performance breakdown reveals distinct growth patterns across these cities:
| City | 2025 Sales | 2024 Sales | Growth Rate |
|---|---|---|---|
| Chennai | 24,892 units | 16,044 units | +55% |
| Bengaluru | 54,414 units | 48,272 units | +13% |
| Hyderabad | 54,271 units | 51,337 units | +6% |
| Combined Total | 1,33,577 units | 1,15,653 units | +15.5% |
Chennai emerged as the standout performer with an impressive 55% surge in sales, while Bengaluru and Hyderabad maintained steady growth trajectories. This collective performance underscores the strength of South Indian real estate markets driven by better supply management and sustained buyer interest.
Overall Market Experiences Decline
Despite the southern success story, the broader national picture revealed challenges. Aurum PropTech , which acquired PropTiger, reported that total housing sales across eight major cities declined 12% to 3,86,365 units in 2025 from 4,36,992 units in the previous year.
Onkar Shetye, Executive Director of Aurum PropTech, characterized the market dynamics: "2025 was not a year of demand destruction, but one of recalibration. Buyers remained active but more deliberate, while developers responded with disciplined supply management. This prevented inventory stress and helped prices remain resilient despite softer volumes."
Regional Performance Variations
The market showed clear regional disparities, with northern and western cities experiencing contractions:
| Region | City | Sales Decline |
|---|---|---|
| Western | Mumbai Region | -26% (1,05,595 units) |
| Western | Pune | -12% (59,223 units) |
| Northern | Delhi-NCR | -13% (35,711 units) |
| Western | Ahmedabad | -12% (37,087 units) |
Kolkata bucked the trend among non-southern cities, recording a 12% increase to 15,172 units from 13,605 units, demonstrating that growth opportunities existed beyond the southern markets.
Supply Management Shows Discipline
The new supply data reflected developer caution and market discipline. Total new supply across the eight cities fell 6% to 3,61,096 units in 2025, compared to 3,85,221 units in 2024. PropTiger noted this represents the lowest annual supply since 2021, indicating developers' strategic approach to inventory management.
This supply discipline, combined with selective buyer behavior, contributed to market stability despite volume pressures. The data suggests that while transaction volumes faced headwinds, the underlying market fundamentals remained supported by balanced supply-demand dynamics and strategic market positioning by key players.
Historical Stock Returns for Aurum PropTech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.01% | -2.84% | -5.07% | -7.82% | -16.28% | +532.04% |
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