Indian realty sector subdued in October; sales, launches decline MoM

India's real estate sector remained subdued in October, with both housing sales and new launches registering a month-on-month decline. While YTD sales value is up 6% YoY, volumes are down, highlighting affordability as a key concern.

The real estate sector in the country continued to show subdued trends in October, with both housing sales and new launches registering declines on a month-on-month basis, according to a recent report by Nuvama Research.

Monthly and Yearly Performance

The report highlighted that housing sales by value fell 12 per cent month-on-month in October, while launches were down by 17 per cent during the same period. It stated "Realty trends remain subdued Housing sales (by value) fell 1 per cent YoY (up 12 per cent MoM) in Oct-25".

On a year-on-year basis, the sector also displayed weakness. Housing sales by value fell 1 per cent YoY in Oct-25, even as they increased 12 per cent MoM. Launches by value declined 15 per cent YoY and 17 per cent MoM.

Year-to-Date Trends and Inventory

But, despite these short-term pressures, the report noted that year-to-date (YTD) CY25 sales value is still up 6 per cent YoY, although launches are down 6 per cent YoY. YTD CY25 sales and launch volumes have dropped 13 per cent YoY and 10 per cent YoY, respectively, indicating softer demand momentum.

Unsold inventory across India remained comfortable at 18 months in October, unchanged from the year-ago period. This stability in inventory levels has enabled developers to increase prices, which have risen YoY across all major cities.

Regional Disparities

However, the overall demand pattern has varied significantly across regions. YTD CY25 demand is up 6 per cent YoY, supported by a strong 25-27 per cent YoY surge in markets such as the NCR, Kolkata, Bengaluru and Chennai. In contrast, sales have declined by 7-9 per cent YoY in Hyderabad, Mumbai Metropolitan Region (MMR) and Pune. YTD CY25 sales volumes are down 13 per cent YoY.

Future Outlook and Concerns

Looking ahead, the report stated that affordability has emerged as a key concern in the near term. It added that there is unlikely to be a long-lasting solution to issues related to weak volume growth, falling home affordability, inadequate supply of mid-income housing, and job generation challenges amid tariff wars and K-shaped economic growth.

The report expects volatility to persist and believes real estate stocks may remain range-bound. The downside, it noted, is supported by falling mortgage rates, while the upside remains restricted due to valuation and volume growth concerns. (ANI)

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