Bengaluru’s housing market lost momentum in 2025, with home sales declining 5% year-on-year as rising property prices, cautious buyer sentiment, and concerns over IT-sector layoffs weighed on demand, according to a report by Anarock.

The slowdown mirrors a broader correction across India’s top housing markets, where residential sales across the seven largest cities fell 14% to 3.95 lakh units. Even as new launches in Bengaluru increased and prices continued to climb, a widening gap between supply and demand led to a sharp rise in unsold inventory, underscoring the growing pressure on India’s urban housing markets.

On an annual basis, the collective average housing price rose by 8% in the top seven cities, from ₹8,590 per sq ft by Q4 2024-end to around ₹9,260 per sq ft at Q4 2025-end.

The slowdown in absorption in Bengaluru came even as new project launches increased in the city. Bengaluru saw approximately 74,260 new units launched in 2025, a 5% increase over the previous year, with the bulk of supply concentrated in the ₹75 lakh to ₹2.5 crore price bracket, according to the report.

The mismatch between supply and demand has led to a sharp build-up in unsold stock. Bengaluru’s unsold inventory rose by 23% by the end of 2025, one of the steepest increases among major cities, as fresh supply outpaced sales.

“The sector’s performance in 2026 hinges on several key factors, most notably rate cuts by the RBI and price control by developers. Amid the currently favourable economic outlook, further repo rate cuts leading to lower home loan interest rates can cause demand to revive significantly,” Anuj Puri, chairman of ANAROCK Group, said.

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MMR witnessed the highest sales

The report stated that the Mumbai Metropolitan Region (MMR) experienced the highest sales of approximately 1,27,875 units, registering an 18% yearly decline. Pune followed with approximately 65,135 units sold, a 20% year-over-year decline. The two Western markets, combined, led residential sales in 2025, accounting for a 49% share of the overall market.

Hyderabad saw approximately. 44,885 units were sold in 2025, representing a significant 23% decline from 2024.

Kolkata recorded sales of approximately 16,125 units in 2025, representing a 12% decline from the previous year. Chennai is the only city to witness a 15% increase in sales in 2025, with approximately 22,180 units sold.

According to the report, MMR, Pune, Bengaluru, Hyderabad, and NCR together accounted for 90% of overall sales in 2025 across the top seven cities.

The seven cities include Mumbai Metropolitan Region (MMR), Delhi NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.