This pronounced regional disparity underscores a significant shift in India's residential property dynamics, moving away from national momentum towards localized economic fundamentals. Chennai's exceptional performance indicates a market anchored by stable end-user participation, less susceptible to the hesitation observed in higher-priced Western markets. Conversely, the downturn in Mumbai and Pune highlights the impact of affordability constraints and evolving buyer selectivity. The year's policy adjustments, notably the Reserve Bank of India's repo rate cuts culminating in a 5.25% rate by December 2025 and a reduction in GST on cement, are poised to recalibrate market conditions for the upcoming year. Chennai's housing market defied the national trend in 2025, reporting a remarkable 55% year-over-year increase in sales volume, reaching 24,892 units. This surge was attributed to stable, end-user-driven demand and a structurally sound local economy, which insulated it from broader market volatilities. In stark contrast, the Mumbai Metropolitan Region (MMR) saw sales plummet by 26.4%, while Pune experienced a 28.5% decline, contributing to an approximate 24% drop in overall Western market sales. This divergence suggests that factors like regional economic health and buyer confidence are increasingly dictating market performance over national trends. Despite the national sales volume drop of approximately 12% in 2025, the overall value of real estate transactions remained robust, driven by the premium housing segment, which saw resilient demand and price appreciation. PropTiger data indicates that while Chennai's prices remained flat in 2025, significant price corrections occurred in MMR (4% decline) and Pune (1% decline). Two key policy interventions are expected to shape the market in 2026. The Reserve Bank of India (RBI) enacted a series of repo rate cuts throughout 2025, bringing the rate down to 5.25% by December 2025. This move is anticipated to ease home loan interest rates, potentially boosting affordability. Simultaneously, the GST Council reduced the tax on cement from 28% to 18% effective September 2025. This reduction in developer input costs, coupled with savings on other materials like tiles and marble, is projected to offer tangible cost relief and enhance housing affordability. Furthermore, developers demonstrated considerable discipline in managing inventory, aligning new supply with absorption rates to prevent price spirals, a strategy that contributed to the resilience of prices despite moderating sales volumes. While overall residential sales volumes in India moderated in 2025. 

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