Rising unemployment and soaring prices have significantly affected India’s real estate sector. As per a Knight Frank report published on April 3, housing sales in Bengaluru declined by 5 per cent to 12,504 units between January and March 2025. Similarly, Delhi-NCR experienced an 8 per cent year-on-year drop, with sales reducing to 14,248 units during the same timeframe.
“The ₹50 lakh– ₹1.5 crore segment has seen lower participation, but this trend may reverse in the next period. Looking ahead, how pricing and supply will evolve remains a key question,” HT quoted Vivek Rathi, Head of Research at Knight Frank India, as saying.
Rathi pointed out that employment concerns are a significant factor contributing to the decline in housing sales. However, he also noted that a growth in job opportunities could potentially lead to a future boom in the housing sector.
“In cities like Bengaluru and Delhi NCR, strong employment generation across various sectors is expected to play a significant role in future growth. However, employment uncertainties have created some disruptions. While prices have risen, sales have declined, leading to a moderation in several markets,” he added.
Another report, released days back, revealed that housing sales in India’s top seven cities saw a sharp decline of 28 per cent in the first quarter of 2025. According to Anarock, only 93,280 units were sold in the January-March period of 2025, compared to 130,170 units in the same quarter of the previous year.
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The real estate consultancy tracked sales across the Mumbai Metropolitan Region (MMR), Bengaluru, Pune, the National Capital Region (NCR), Hyderabad, Chennai and Kolkata.
