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India's Home Sales Plummet, Prices Surprisingly Stable

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  Published in House and Home on Friday, February 13th 2026 at 9:07 GMT by Zee Business
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New Delhi, February 13th, 2026 - India's residential real estate market experienced a notable slowdown in 2025, with home sales plummeting to a three-year low, according to a comprehensive report released today by PropTiger. However, defying expectations of a price correction, property values across major cities have remained remarkably stable. This paradoxical situation - declining sales coupled with firm prices - paints a complex picture of the market and raises questions about its future trajectory.

PropTiger's analysis reveals a significant contraction in transactional activity throughout 2025. While exact figures vary by region, the overall trend demonstrates a clear deceleration from the robust growth seen in 2023 and early 2024. This downturn hasn't translated into distressed selling or significant price cuts, however, leaving both buyers and sellers in a somewhat unusual position.

Decoding the Dip: The Forces Behind the Slowdown

Several interconnected factors contributed to the decline in home sales. Chief among these is the sustained rise in mortgage rates throughout 2025. Following a period of historically low interest rates designed to stimulate economic activity post-pandemic, central banks globally, including India's Reserve Bank, implemented tightening monetary policies to combat inflation. This directly impacted housing affordability, increasing the cost of homeownership and discouraging potential buyers.

Furthermore, persistent global economic uncertainty played a role. Geopolitical tensions, supply chain disruptions, and fluctuating commodity prices created a cautious environment, leading many prospective homeowners to delay major purchasing decisions. The slowdown in global growth also affected domestic employment and income levels, further dampening demand.

While demand softened, supply remained relatively consistent in many key markets. Developers, anticipating continued growth based on pre-2025 trends, continued to launch new projects, exacerbating the imbalance between supply and demand. However, unlike previous downturns where oversupply led to drastic price reductions, developers adopted a different strategy.

The Resilience of Prices: A Developer's Stand

The PropTiger report highlights a deliberate effort by real estate developers to maintain pricing. Rather than engage in price wars to stimulate sales, they opted to prioritize profit margins, even if it meant slower sales velocity. This strategy suggests a belief that the current slowdown is temporary and that demand will eventually rebound.

"Developers have learned from past cycles," explains Samir Gupta, a senior analyst at PropTiger. "They are less inclined to slash prices and erode profitability, especially given rising input costs. They are choosing to hold firm and wait for more favorable market conditions." This approach is particularly evident in the mid-to-premium segment of the market, where developers have greater pricing power.

Impact on Stakeholders: Navigating the New Landscape

The current market dynamics present unique challenges and opportunities for both buyers and sellers. Buyers, while eager to capitalize on a potential slowdown, are finding limited room for negotiation. The stability in prices means they won't be able to secure the deep discounts they might have expected during a more traditional market correction. However, they may have more time to research and choose the right property without the pressure of a rapidly escalating market.

Sellers, on the other hand, may need to adjust their expectations. While prices haven't fallen, the reduced demand means that properties are taking longer to sell. They might need to be more realistic about their asking prices and consider offering incentives to attract buyers. Those looking for a quick sale may face greater challenges.

Looking Ahead: Prospects for 2026 and Beyond The PropTiger report suggests that the stability in property prices is likely to persist in the near term. However, a potential rebound in sales could occur if the economic landscape improves and mortgage rates ease. A reduction in inflation, coupled with a stabilization of geopolitical tensions, could create a more favorable environment for homeownership.

Analysts are closely watching the Reserve Bank's monetary policy decisions. Any indication of a shift towards a more accommodative stance could provide a much-needed boost to the housing market. Government initiatives aimed at boosting affordable housing and providing tax benefits for first-time homebuyers could also play a significant role.

Ultimately, the future of India's housing market hinges on a complex interplay of economic factors, government policies, and developer strategies. While the 2025 slowdown presented a challenge, the resilience of property prices suggests underlying strength and potential for future growth. The market is currently at a crossroads, and the coming months will be crucial in determining its direction.