by Deepak Sawant 
बिक नहीं रहे बिल्डरों के Flat ! Report से Real Estate में हड़कंप !
The Indian real estate market in 2025 is going through a big change. There is a clear gap between luxury homes and affordable housing. According to a new report by JLL (Jones Lang LaSalle), sales of normal flats in big cities have dropped sharply, while the prices of luxury homes are touching new highs.
This sudden twist has made both homebuyers and builders worried about what lies ahead for the property market. On one side, property prices keep going up. On the other side, fewer people are buying, and many ready-to-sell flats are just lying unsold. Together, these problems are completely changing the way urban housing works in India.
Sharp Decline in Property Sales Across Top Cities
According to JLL’s latest data, the first six months of 2025 have seen a double-digit drop in residential sales across India’s top seven cities.
- Bengaluru and Delhi-NCR witnessed a 15% fall in property sales.
- Kolkata faced the steepest decline, with sales plunging by 29%.
- Mumbai Metropolitan Region (MMR) also recorded a 15% dip in transactions.
These numbers show a worrying sign for builders who were hoping for things to get better after the pandemic. The slowdown is happening while house prices are still going up, making it hard for people to find homes they can afford.
Luxury Housing Prices Surge to Record Highs
Interestingly, even as sales are dropping, prices in the luxury housing segment are climbing higher.
- In Delhi-NCR and Bengaluru, home prices surged by 14%.
- Mumbai saw an 8% increase in rates.
- Hyderabad recorded an 11% price rise.
This rise is mainly because rich buyers and investors think luxury property is a safe place to put their money when the world economy is shaky. Expensive homes costing between ₹2 crore and ₹50 crore are still in high demand, especially in big cities where more people are earning high incomes.
Middle-Class Homebuyers Under Pressure
While the luxury housing market is doing well, middle-class families are finding it harder to buy a home. Property prices have gone up so much that many households can’t fit it into their budget, forcing a lot of people to drop their plans.
Higher interest rates, big EMIs, and incomes that haven’t grown much have made things worse. For many middle-income families, owning a home in cities like Mumbai, Delhi, or Bengaluru now feels out of reach.
Because homes are becoming less affordable, many buyers are deciding to wait. They hope prices will come down or the government will bring in schemes that make buying a house easier.
Construction Costs and Developer Challenges
Developers are facing their own set of challenges as construction costs continue to rise. The increasing The rising cost of raw materials like cement, steel, and labor has cut into builders’ profits, making it tough to start new projects at prices buyers can afford.
On top of that, there’s a big problem with unsold homes. According to JLL, the number of houses lying unsold has gone up a lot:
Homes priced between ₹2 crore and ₹5 crore have seen a 52% jump in unsold stock.
Ultra-luxury homes costing ₹20 crore to ₹50 crore have seen a 37% rise in unsold stock.
This extra supply shows that there’s a big gap between what buyers want and what’s being built. Because of this, many developers are waiting before launching new projects until the market settles down.
Why Sales Are Falling Despite Price Growth
Real estate experts attribute this paradox—falling sales but rising prices—to three key factors:
1. High Prices Limiting Affordability
The steep rise in property prices, especially in Tier-1 cities, has alienated middle-class buyers. Even though demand remains high, affordability is at historic lows, discouraging new purchases.
2. Investor-Driven Luxury Demand
A significant portion of recent sales comes from wealthy investors looking for premium properties. This demand is driving up prices in the luxury segment, even as regular housing sales decline.
3. Economic Uncertainty and Buyer Caution
With concerns over inflation, job stability, and interest rate fluctuations, many potential buyers are adopting a wait-and-watch strategy. They expect either a price correction or at least stabilization before making major financial commitments.
Regional Trends: South India vs. North India
The slowdown is not uniform across the country. Certain regions are showing unique patterns:
- South India: Cities like Hyderabad, Chennai, and Bengaluru continue to see strong luxury demand driven by the booming IT sector and high-income professionals.
- North India (Delhi-NCR): While premium housing remains strong, mid-range housing is under severe stress due to high land prices and limited affordability.
- Mumbai MMR: One of the most expensive markets, Mumbai is struggling with unsold inventory, especially in the ultra-luxury segment.
These regional variations suggest that developers will need localized strategies to navigate the current market turbulence.
Expert Predictions for the Coming Months
Market experts say the sharp rise in property prices over the past year can’t continue for long. They expect prices to grow more slowly in the coming months as demand weakens and more unsold homes pile up.
This slowdown could be good news for buyers who have been waiting to make a move. But a big drop in prices is unlikely unless there’s a major shift in the economy or new government policies to boost affordability.
For now, both buyers and builders are being careful, watching the market closely before taking any big decisions.
Impact on First-Time Homebuyers
First-time homebuyers are facing the most trouble right now. Home loans have become costlier because of higher interest rates, and property prices keep going up.
Government schemes and subsidies do help a bit, but not enough to make homes truly affordable. Because of this, many young professionals are choosing to rent instead of buy, especially in cities like Bengaluru and Mumbai, where rents are fairly steady.
If this trend continues, it could hurt the real estate market in the long run, as fewer first-time buyers will slow down overall growth.
Developer Strategies: Surviving the Slowdown
To cope with the challenging environment, developers are adopting new strategies:
- Focusing on luxury projects with higher profit margins and stable demand.
- Delaying new launches until unsold inventory is cleared.
- Offering flexible payment plans and discounts to attract hesitant buyers.
- Exploring sustainable and smart housing solutions to appeal to environmentally conscious buyers.
Some developers are also partnering with private equity firms and foreign investors to secure funding, ensuring business continuity amid the slowdown.
Government Role and Policy Measures
Experts suggest that government intervention will be crucial in stabilizing the housing market. Potential measures include:
- Reducing stamp duty and registration charges to make home purchases more affordable.
- Offering tax benefits and incentives for first-time homebuyers.
- Supporting developers with low-cost financing options to encourage new project launches.
- Strengthening infrastructure development to open up new areas for affordable housing.
Such steps could help restore balance in the market and prevent a prolonged slump.
Conclusion: A Market at Crossroads
Critical turning points are 2025 Indian real estate market Luxury homes continue to flourish on the one hand thanks to rich investors and high-net-worth people. On the opposite, middle-class house purchasers struggle with record prices and declining affordability.
The following months will determine everything. The market could steadily recover if prices level and unsold inventory drops. The deceleration could worsen if affordability declines and demand remains low, impacting not only builders but also the larger economy.
For now, buyers, sellers, and policymakers must adapt to this new reality and take strategic steps to ensure sustainable growth in India’s real estate sector.
