India’s real estate sector, after posting a strong performance in Q4 FY24, is beginning to show early signs of cooling demand across key urban markets. Despite a record surge in home sales and new project launches during the January-March quarter, industry analysts note a slight dip in buyer sentiment entering Q1 FY25.
According to recent data from Knight Frank India and CREDAI, while Q4 saw a 12–15% increase in housing sales YoY in top cities like Mumbai, Pune, Bengaluru, and Hyderabad, April figures indicate a slowdown in fresh inquiries and site visits. Rising interest rates, high property prices, and cautious buyer behavior are contributing factors behind the tempered enthusiasm.
Premium and mid-segment housing continue to lead the market, but affordable housing is facing mounting pressure due to increased construction costs and reduced subsidies. Developers are expected to adopt a more conservative launch strategy moving forward, focusing on inventory clearance and flexible payment schemes.
While the long-term outlook for Indian real estate remains bullish, experts suggest the next two quarters will be critical in determining the trajectory of demand amid macroeconomic shifts and policy changes.
