India's southern real estate market demonstrated resilience in 2025, with Bengaluru, Hyderabad, and Chennai collectively experiencing a 15% surge in housing sales. According to a report by PropTiger, these three major South Indian cities saw sales climb to over 1.33 lakh units, a notable increase from 1.15 lakh units in the preceding year. This growth was attributed to a combination of improved housing supply and strong buyer demand in the region.
While these southern cities thrived, the overall housing sales across eight major cities in India witnessed a 12% decline, totaling 386,365 units in 2025 compared to 436,992 units in 2024. This indicates a divergent trend, with the southern markets outperforming their counterparts in other regions. Declines in sales were seen in the Mumbai region, Delhi-NCR, Pune, and Ahmedabad.
City-Specific Performance
- Chennai: Showed exceptional growth, with sales increasing by 55% to 24,892 units in 2025 from 16,044 units in 2024. This impressive performance was supported by infrastructure expansion and improved affordability in the city. Some reports cite a lower sales figure of 22,180 units, still representing a 15% year-on-year increase.
- Hyderabad: Experienced a more modest increase of 6%, with sales rising to 54,271 units in 2025 from 51,337 units in the previous year. The city's housing market was driven by sustained end-user demand and the spillover effects of a strong office market. While overall registrations were slightly lower for the year, the total value of registered properties increased by 11%, indicating a shift towards higher-value housing.
- Bengaluru: Housing sales in Bengaluru increased by 13%, reaching 54,414 units in 2025 compared to 48,272 units in 2024. Other reports cite a marginal 5% decline in sales, with approximately 62,205 units sold. The city's market saw volatility throughout the year but ended on a strong note.
Factors Influencing the Market
According to Onkar Shetye, Executive Director of Aurum PropTech, 2025 was "not a year of demand destruction, but one of recalibration". Buyers remained active but more deliberate, and developers responded with disciplined supply management. This approach helped prevent inventory stress and kept prices resilient despite softer volumes in some areas.
Across the top eight cities, new launches also decreased by 6% to 361,096 units, representing the weakest supply addition since 2021. This restrained approach from developers helped maintain price stability, with developers prioritizing margins over chasing volumes.
Contrasting Trends and Expert Opinions
While PropTiger's report highlights a decline in overall housing sales across major cities, other sources indicate a more nuanced picture. ANAROCK Research, for example, suggests that overall housing sales in the top seven cities witnessed a 14% decline in 2025. Chennai, however, bucked this trend, emerging as the country's most resilient housing market.
Outlook
Despite the overall decline in sales in major markets, the southern cities of Bengaluru, Hyderabad, and Chennai have demonstrated strong growth, driven by a combination of factors, including strategic infrastructure development, affordability, and a recalibrated approach from developers. While some sources point to increased unsold inventory in Bengaluru, the region's overall performance indicates a healthy and growing real estate market.
