India's Residential Real Estate Shows Signs of Revival

After a challenging year, India's residential real estate sector has witnessed a 2% year-on-year growth in housing sales across the top eight tier-1 cities in June 2025. This marks the first annual increase in 12 months, signaling a potential turnaround for the market.

Gurugram Emerges as the Top Performer

Gurugram has led the recovery with an impressive 68% jump in sales volumes compared to the same period last year. Following closely are Chennai and Hyderabad, with growth rates of 24% and 15%, respectively.

Mixed Trends Across Cities

While some cities like Gurugram are thriving, others such as the Mumbai Metropolitan Region (MMR) and Pune have seen declines in housing sales, with drops of 29% and 27%, respectively.

Rising Prices Despite Varied Demand

Housing prices across top cities have continued to rise, with Gurugram leading the price increase at 40% year-on-year. This trend reflects resilience in pricing, even as demand varies across different markets.

Outlook and Challenges Ahead

Analysts project a positive outlook for markets like MMR and Gurugram, citing strong price momentum and controlled inventories. However, caution is advised for Bengaluru and Hyderabad, where inventory accumulation could pose challenges.