Housing Sales in Top 7 Cities See 20% YoY Drop in Q2 2025, but Show 3% QoQ Growth
India's housing market experienced a 20% year-on-year decline in sales during the second quarter of 2025, primarily due to geopolitical tensions and high property prices. However, a 3% quarter-on-quarter increase indicates a potential recovery.
Real EstateHousing MarketProperty PricesAnarock ResearchQuarterly SalesReal Estate PuneJun 26, 2025
However, a 3% quarter-on-quarter (Q-o-Q) uptick in sales suggests that the market may be regaining some momentum, particularly as domestic uncertainties ease and monetary policy turns supportive.
The Mumbai Metropolitan Region (MMR) and Pune remained key contributors to national housing demand, together accounting for nearly 48% of all sales in the quarter. MMR led with 31,275 units sold, while Pune followed with 15,410 units. However, both cities witnessed double-digit annual declines — 25% for MMR and 27% for Pune.
Interestingly, Chennai emerged as the only city to post an annual sales growth, with volumes rising 11% to 5,660 units in Q2 2025. On a quarterly basis, Chennai sales jumped 40%, underscoring the city’s resilience amid broader market headwinds.
Sales Snapshot Across Cities (Q2 2025):
- NCR: 14,255 units sold, up 14% Q-o-Q
- Bengaluru: 15,120 units sold, up 1% Q-o-Q
- Hyderabad: 11,040 units sold, up 9% Q-o-Q
- Kolkata: 3,525 units sold, down 10% Q-o-Q
The number of new project launches declined by 16% year-on-year, falling from 1,17,165 units in Q2 2024 to 98,625 units in Q2 2025. However, the luxury and ultra-luxury segments continued to dominate the market.
MMR remained the top contributor with 28,165 new units, despite an 8% quarterly and 36% annual decline. Over 59% of its new supply was in the sub-₹80 lakh segment. NCR saw a striking 69% Q-o-Q surge in new launches (18,760 units), with a massive 82% of the supply in the luxury category (priced above ₹1.5 crore). Bengaluru launched 15,345 units, with 92% of them in the premium and luxury segments. Chennai saw new launches soar 79% Q-o-Q and 65% Y-o-Y to 8,525 units, largely in mid-to-premium categories. Hyderabad and Pune witnessed modest to sharp declines in supply, while Kolkata saw the sharpest drop of 54% Q-o-Q.
While quarterly price appreciation remained subdued at 1%, the annual rise in average residential prices across the top 7 cities stood at a significant 11%. NCR led the surge, registering a 27% annual jump, followed by Bengaluru at 12%.
“The war-like climate, including Operation Sindoor and escalating Iran-Israel tensions, pushed homebuyers into a wait-and-watch mode,” said Anuj Puri, Chairman, ANAROCK Group. “However, with the RBI’s repo rate cut and declining home loan rates, we’re seeing a recovery in sentiment.”
Despite muted sales, unsold inventory remained largely stable. By the end of Q2 2025, the top 7 cities had approximately 5.62 lakh unsold units, marginally up from 5.60 lakh in Q1. On an annual basis, unsold inventory declined 3%, with Pune showing the sharpest drop of 15%.
Frequently Asked Questions
What caused the 20% year-on-year decline in housing sales in Q2 2025?
Escalating geopolitical tensions and stubbornly high property prices were the primary factors that led to the 20% year-on-year decline in housing sales in Q2 2025.
Which cities saw the highest quarter-on-quarter growth in housing sales?
Chennai and NCR saw the highest quarter-on-quarter growth in housing sales, with Chennai sales jumping 40% and NCR sales increasing by 14%.
How did the luxury and ultra-luxury segments perform in the housing market?
The luxury and ultra-luxury segments continued to dominate the market, with NCR and Bengaluru leading in new launches in these segments.
What was the annual rise in average residential prices across the top 7 cities?
The annual rise in average residential prices across the top 7 cities stood at a significant 11%, with NCR leading the surge at 27%.
What factors are contributing to the recovery in the housing market sentiment?
The RBI’s repo rate cut and declining home loan rates are contributing to a recovery in the housing market sentiment.
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