Indian real estate sector sees cooling demand despite strong Q4: Report

New Delhi [India], May 15 (ANI): India's residential real estate sector has shown signs of slowdown, after witnessing a period of growth, according to a sector update report by Antique Stock Broking.

"Although all new project launches by listed companies under our coverage received a strong response in 4QFY25, most Expressions of Interest (EoI) were built in 2Q/3Q," the report said.

However, walk-ins and conversions have seen a slowdown patch in recent months, weighed down by "financial market volatility, a gloomy IT sector outlook, and economic growth concerns prompting buyers to delay decisions in search of greater certainty or better deals." says the report. Similar to that, the premium and luxury segments also witnessed lower demand.

According to the report, the rising supply in the Mumbai Metropolitan Region (MMR) has helped buyers to have more negotiating power. Even reputed developers are offering incentives or discounts in South and South-Central Mumbai. Demand in the mid-income segment across suburbs and Thane remains steady but lacks earlier enthusiasm.

Similarly, southern cities like Bengaluru and Hyderabad are also witnessing subdued demand, particularly for properties priced above Rs 20 million. Contrary to that, demand for below Rs 20 million remains intact, despite of approval challenges persisting in Bengaluru.

In the northern part of the country, the pace of new project launches has slowed, but well-located developments continue to attract buyers.

The report, however, adds that despite the overall cooling, select developers have outperformed expectations. Aditya Birla Real Estate, Godrej Properties, Prestige Estates, and Macrotech Developers all posted better-than-expected pre-sales in Q4. Analysts believe much of this demand was frontloaded in earlier quarters.

Looking ahead, while inventory levels remain comfortable, the sector may experience price stability or mild corrections, especially if economic headwinds persist. Investors and homebuyers alike appear to be exercising greater caution in what is becoming an increasingly supply-rich and demand-sensitive market. (ANI)