In Q2 2025, housing sales in the top 7 cities fell 20% while prices remained high

Housing sales across India’s top seven cities saw a notable slowdown in Q2 2025, dropping 20% year-on-year to about 96,285 units, down from over 1.2 lakh in Q2 2024, according to ANAROCK Research. However, on a quarter-on-quarter basis, the market showed a 3% improvement—offering a faint signal of recovery.

ANAROCK Chairman Anuj Puri described the period as a “rollercoaster,” citing global and domestic geopolitical tensions—particularly Operation Sindoor and the Iran-Israel conflict—as primary dampeners on buyer sentiment. Combined with high property prices, these factors led to a widespread pause in purchase decisions. Still, Puri noted, "Buyers paused, not disappeared," adding that with easing tensions and the RBI’s repo rate cut, consumer confidence is starting to return.

City-wise Breakdown:

• Chennai was the sole outlier, recording an 11% year-on-year sales increase and a sharp 40% quarterly rise, reflecting resilient demand.

• MMR (Mumbai Metropolitan Region) and Pune, despite contributing nearly 50% of Q2’s sales, saw steep declines of 25% and 27%, respectively.

• Bengaluru posted a 1% quarterly rise, but was still 8% below last year’s levels.

• Hyderabad recorded a 9% sequential growth, but sales were down 27% annually.

• Kolkata experienced the largest quarter-on-quarter drop, falling 10%.

New Launches & Supply Trends:

New housing supply across top cities also dropped 16% year-on-year, with 98,625 units launched in Q2 2025. Developers appeared cautious amid weak demand:

• MMR led in new launches but saw a 36% drop from Q2 2024.

• NCR stood out with a 69% quarterly and 10% annual increase, largely due to luxury project launches.

A growing imbalance in supply was evident—46% of new launches were luxury/ultra-luxury (above ₹1.5 crore), while just 12% catered to the affordable housing segment (below ₹40 lakh), making it harder for middle-income buyers to enter the market.

Prices & Inventory:

• Average residential prices rose 11% YoY, led by NCR (27%), Bengaluru (12%), and Hyderabad (11%).

• Quarterly price rise was modest at 1%, suggesting a cooling trend.

• Unsold inventory remained flat from Q1 at 5.62 lakh units, but fell 3% YoY. Pune saw the steepest decline (15%), followed by Hyderabad and Bengaluru.

Puri emphasized that developers are wisely focusing on completing ongoing projects instead of launching new ones in weak markets, helping to avoid over-supply pressures.

Outlook:

Despite the year-on-year slump, the modest quarterly growth, easing interest rates, and cooling prices have prompted optimism for a demand revival in H2 2025. A recalibration of supply toward affordable and mid-range homes will be crucial for sustaining the recovery.

As Puri summarized, “The market is stabilising. If developers address affordability gaps and financing remains favourable, we could see a much stronger second half.”