New Delhi: CBRE predicts that the residential housing market in India will continue to grow in the coming months.
The paper stated that "Several variables are contributing to this favorable trend." An increased desire for homeownership, combined with rising incomes and ongoing infrastructure improvements, has fueled demand."
Several favorable aspects fueled demand, including a growing desire to own a home, rising income levels, and ongoing infrastructure development.
A significant movement was observed toward the high-end and premium housing categories, which combined accounted for over 40% of total apartment sales and approximately 44% of new launches during the quarter.
High-end projects alone accounted for 27% of total sales, with the remainder dominated by mid-end and budget categories. Key metropolitan cities such as Mumbai, Pune, and Delhi-NCR led the market activity, accounting for 62% of total sales in Q1 2025.
The research also stated that India's residential real estate sector maintained a balanced trend in the first quarter of 2025, with sales and new launches virtually equal.
According to the research, over 65,800 flats were sold during the time, while approximately 65,300 new units were launched, indicating that the sector was in equilibrium.
It stated that "India's residential market had an equilibrium between new launches and sales in Q1 2025; roughly 65,000 units were launched, reflecting the amount of sales."
The research emphasized that developers demonstrated a great awareness of market demand while keeping unsold inventory and project overhang under control.
Furthermore, the research noted that the Reserve Bank of India's recent transition to a monetary easing cycle has made home loans more accessible, encouraging more buyers to take the jump. The shrinking difference between EMIs and rental expenses has also encouraged more people to buy homes.
Looking ahead, the research stated that project launches are projected to remain strong throughout the year, bolstered by major land acquisitions undertaken in 2023-24. This proactive approach by developers is expected to sustain the residential sector's growing momentum in the following months.
