Housing Sales Decline by 19% in Nine Major Cities During Q2 2025
A recent report by PropEquity reveals a significant 19% drop in housing sales across nine major cities in India during the second quarter of 2025. The decline is attributed to various economic and market factors, with Mumbai experiencing the largest drop.
Housing SalesReal EstatePropequityEconomic UncertaintyNew SupplyReal EstateJun 25, 2025
The decline in housing sales is attributed to a combination of economic uncertainties, rising interest rates, and a slowdown in new supply. Mumbai, one of the largest and most populous cities in India, saw the steepest drop, with sales falling by 28% compared to the same period last year. This significant decline is particularly concerning given Mumbai's position as a major economic hub and the high demand for residential properties in the region.
Delhi-NCR, on the other hand, showed a more modest decline of 10%, which is still a cause for concern. The region has been grappling with issues such as high property prices and a lack of affordable housing options. Despite this, there has been a slight increase in the number of new supply units, which could help to stabilize the market in the coming quarters.
Bengaluru, known for its vibrant tech industry and growing population, saw a 15% drop in housing sales. The city has been a hotbed for real estate development, but the recent slowdown highlights the need for more diversified economic growth and better urban planning. Chennai, another major city in the south, experienced a 12% decline, reflecting similar trends across the country.
The report also noted that the overall new supply of housing units across the nine cities was down by 14% compared to Q2 2024. This reduction in new supply is partly due to developers' cautious approach in the face of economic uncertainty and the need to focus on completing existing projects rather than launching new ones.
PropEquity's CEO, Ravi Kumar, commented on the findings, stating, 'The decline in housing sales is a clear indication of the challenges faced by the real estate sector. While the market has shown resilience in the past, the current economic environment requires a more concerted effort from both the government and the private sector to address the underlying issues and stimulate growth.'
The government has been taking steps to support the real estate sector, including measures to improve affordability and streamline the approval process for new projects. However, more needs to be done to address the structural issues that are impacting the market.
In conclusion, the 19% drop in housing sales across nine major cities in Q2 2025 is a significant concern for the Indian real estate sector. While there are some positive signs, such as an increase in new supply in certain regions, the overall market remains under pressure. Stakeholders will need to work together to address the challenges and ensure the long-term health and stability of the housing market.
PropEquity is a leading real estate analytics firm that provides insights and data-driven solutions to the Indian real estate market. With a focus on transparency and accuracy, PropEquity helps developers, investors, and policymakers make informed decisions to drive growth and stability in the sector.
Frequently Asked Questions
What is the main reason for the decline in housing sales?
The main reasons for the decline in housing sales are economic uncertainties, rising interest rates, and a slowdown in new supply.
Which city experienced the largest drop in housing sales?
Mumbai experienced the largest drop in housing sales, with a decline of 28% compared to the same period last year.
What is PropEquity's role in the real estate market?
PropEquity is a leading real estate analytics firm that provides insights and data-driven solutions to the Indian real estate market, helping developers, investors, and policymakers make informed decisions.
How has the new supply of housing units been affected?
The overall new supply of housing units across the nine cities was down by 14% compared to Q2 2024, partly due to developers' cautious approach and the need to focus on completing existing projects.
What steps is the government taking to support the real estate sector?
The government is taking steps to support the real estate sector by improving affordability, streamlining the approval process for new projects, and addressing structural issues in the market.
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