{"id":"f-445134d771-aa8d21e6-0208-5ea3-9351-644a101339c2","title":"Demand Softens, Supply Rebounds as India’s Housing Market Enters a Phase of Measured Moderation in October-December 2025","description":"Demand declines 8.7% QoQ while housing supply rebounds 3.4% QoQ across key cities in OND 2025. Residential prices rise 1.5% QoQ and 16.9% YoY, marking the slowest pace of appreciation in two years.","timestamp":1768304670,"category":"business","headline":"Demand Softens, Supply Rebounds as India’s Housing Market Enters a Phase of Measured Moderation in October-December 2025","modifiedHeadline":"India's Housing Market Cools in Late 2025","subCategories":["scid_4a0451c7"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"451","fcSummary":"India's residential real estate shows moderation with an 8.7% demand dip, but supply rose by 3.4% in Q4 2025. Price growth slowed to 1.5% QoQ, a 16.9% YoY rise. Developers focus on mid, upper-mid segments. Interest rates and infrastructure will shape 2026 trends.","summary":"India's housing market cools: Demand softens (-8.7%), supply rebounds (+3.4%). Price rises slow to 1.5% QoQ, a two-year low (OND 2025).","ctaUrl":"https://trends.glance.com/newz/news/IN/en/timesnow/f-445134d771-aa8d21e6-0208-5ea3-9351-644a101339c2","sourceUrl":"https://www.timesnownews.com/business-economy/real-estate/demand-softens-supply-rebounds-as-indias-housing-market-enters-a-phase-of-measured-moderation-in-october-december-2025-article-153441377","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/obrjzx1uLg30.webp","content":"

New Delhi: India’s residential real estate market entered a phase of measured moderation, with housing demand declining by 8.7% quarter-on-quarter (QoQ)

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even as supply rebounded by 3.4% QoQ across key cities, according to Magicbricks’ latest PropIndex report for the October–November–December (OND) 2025 quarter. Residential prices rose by 1.5% QoQ and 16.9% year-on-year (YoY) during the quarter—the slowest pace of appreciation recorded in the past two years—indicating a shift towards more stable, value-led market conditions amid seasonal and policy-related recalibration. The moderation in demand aligns with festive-season spending patterns and ongoing monetary policy transitions, as homebuyers adopted a wait-and-watch approach amid evolving interest rate expectations. At the same time, the rebound in supply indicates cautious confidence among developers, particularly in price brackets where affordability and demand depth remain strong. After two quarters of relative stability, housing supply gained momentum during OND 2025, with pan-India listings rising 3.4% QoQ and remaining marginally positive on an annual basis. Greater Noida (+9.6%), Gurugram (+6.6%), Thane (+5.1%) and Noida (+4.8%) emerged as key contributors to new supply additions. The revival was largely concentrated in the mid and upper-mid segments, as developers increasingly aligned new launches with end-user affordability thresholds. A closer look at supply composition reveals a strategic recalibration across markets. In the National Capital Region, mid and upper-mid segment supply rose sharply in Greater Noida and Gurugram (both +27.3%) and Noida (+13.4%), while luxury supply showed signs of moderation. Gurugram recorded a 32.5% increase in homes priced up to INR 3 crore, compared to a 14.2% rise in the luxury segment above INR 5 crore. Mumbai mirrored a similar trend, with supply up to INR 5 crore increasing by 10.2%, even as listings above INR 9 crore declined by 8.5% QoQ. Bengaluru remained the only major market to witness consistent expansion in luxury housing, supported by demand across established micro-markets such as Whitefield, Koramangala, Indiranagar, JP Nagar and Bellary Road. In contrast, Hyderabad saw a stronger push towards mid-segment housing, with supply up to INR 2.5 crore rising by 15.4%, compared to a 9.5% increase in homes priced above INR 5 crore. Select cities are also emerging as new premium-growth pockets. Chennai and Kolkata recorded an increase of 19.2% and 11.9%, respectively, in supply above INR 3 crore, while Pune (+28.9%) and Thane (+33.1%) saw notable traction at higher price points. This trend is being supported by infrastructure-led development, including metro expansions, improved urban connectivity, and large-scale logistics and employment corridors. Pricing trends during the quarter reinforced the narrative of market stability. While residential values continued to rise, the pace of appreciation moderated significantly, indicating a transition towards more rational price discovery. Faster supply additions relative to demand are reshaping market dynamics, with selective inventory absorption and cost-side pressures supporting price resilience, particularly in well-connected micro-markets. Looking ahead to 2026, market momentum is expected to be influenced by interest rate clarity, infrastructure execution, and continued alignment of new supply with affordability thresholds. A potential downward movement in lending rates could help convert deferred demand into transactions, supporting absorption levels and maintaining pricing stability across key residential markets.

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Demand Softens, Supply Rebounds as India’s Housing Market Enters a Phase of Measured Moderation in October-December 2025

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