Housing sales volumes for Tier-1 real estate developers declined by 6% in FY25.

According to India Ratings and Research (Ind-Ra), signaling a slowdown in the residential real estate cycle after strong growth in FY23 and FY24. The drop was more pronounced in Q4FY25, with a 13% YoY dip. Despite lower volumes, sales value rose 9% YoY in both Q4 and the full fiscal year due to higher realisations and a better sales mix. Ind-Ra attributes the slowdown to a high base effect and project launch delays. Looking ahead, booking value growth is expected to moderate in FY26 to low-to-mid single digits. However, the recent interest rate cut could act as a growth catalyst, especially for the affordable and mass-market segments. Sector consolidation, supportive policies, and demand in the mid-premium segment may also help sustain momentum. Mahaveer S. Jain from Ind-Ra noted that better product mix offset volume weakness, keeping booking values resilient.