T
he Indian housing market is a sizzling hotbed of activity, with prices soaring and inventory dwindling. But don't hold your breath for a price correction – new projects from reputable developers are selling like scorching hotcakes, and supply remains comfortable. According to Propequity's data, unsold inventory in top metros is far from alarming.
Long-term trends reveal a more nuanced picture. Since 2019, NCR prices have surged an astonishing 212%, with inventory shrinking to just 11 months. Mumbai, India's most expensive market, has seen a more measured 28% rise during the same period, with unsold inventory in 14 months. Bengaluru has experienced a 67% price jump since pre-COVID days, with inventory down to 13 months.
While prices have skyrocketed in recent years, viewed against a longer timeline, the trends appear rational. Inflation is sticky, land isn't getting cheaper, and developers aren't desperate yet. However, even bullish builders know that the past four years' price surge isn't sustainable. Ultra-luxury sales are showing signs of slowing, and housing demand will rationalize as stock market gains shrink.
Smart builders are already adapting to this shift by rolling out payment plans to make homes more affordable. For instance, Emaar's Urban Ascent on Dwarka Expressway offers a 20:30:50 plan, while Signature Global and Prateek Group also offer flexible payment options. These plans signal that the housing market is opening up to negotiations – so sharpen your skills.
The resale market holds secrets for savvy buyers. Developers aren't slashing prices, but investors might. Many high-ticket sales in hot markets are partly driven by wealthy buyers snapping up multiple units, hoping to flip them. Resale inventory is creeping up, and you can use this to your advantage when negotiating with developers.
Before committing to a purchase, head to your state's RERA website and check the developer's filings. Pay attention to project timelines – many builders now give themselves six years to complete projects to avoid RERA penalties. Verify the past delivery track record of the developer before committing. If their previous projects have been delayed, don't expect a miracle this time.
If you're risk-averse, consider buying what you can see – a well-maintained resale apartment in an established condominium is often a smarter purchase than a new launch. Older homes typically offer more carpet area and come with the advantage of immediate possession.
The RBI's 0.25% rate cut after five long years is a big cheer for homebuyers in 2025. And if inflation cools alongside a global economic softening, more rate cuts could be on the horizon – making this the sweetest relief existing and new homebuyers could get in 2025.
The final word: buy smart, not out of fear. As a buyer, you will have more power in the coming year. Today's real risk isn't missing out – it's making an emotional, rushed decision. Take your time, do your homework, and negotiate hard.
