Housing Sales Plunge 20% in India, 25% in Mumbai Metropolitan Region
Increasing property prices and global geopolitical tensions have led to a 20% decline in housing sales across seven major Indian cities, with Mumbai Metropolitan Region (MMR) experiencing a 25% drop in the second quarter of 2025.
Housing SalesReal EstateMumbai Metropolitan RegionProperty PricesGeopolitical TensionsReal Estate MumbaiJun 30, 2025
Approximately 96,285 houses were sold in the second quarter (April-June) of 2025 across the seven metropolitan cities—National Capital Region (NCR), MMR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata—compared to 120,335 houses sold in the same period in 2024. Despite the overall decline, housing sales in the seven cities increased marginally by 3% compared to the first quarter of 2025.
Chennai, NCR, Hyderabad, and Bengaluru saw a significant spike in sales, increasing by 40%, 14%, 9%, and 1%, respectively. However, Kolkata, Pune, and MMR experienced a decline in housing sales by 10%, 4%, and 1%, respectively. The second quarter of 2025 was particularly challenging for the Indian housing market, marked by major military actions both domestically and internationally.
“The second quarter of 2025 was a rollercoaster for the Indian housing market, rocked by major military actions at home and abroad. The war-like climate pushed homebuyers into a wait-and-watch mode, compounding the impact of soaring property prices over the past two years,” Anuj Puri, chairman of Anarock Group, told Hindustan Times. “Now, with domestic tensions easing and the Reserve Bank of India’s repo rate cut injecting fresh optimism, buyer sentiment is rebounding.”
Other real estate consultants echoed similar sentiments. “Geopolitical tensions always have an impact on Indian real estate, though the degree varies depending on the geography and Indian economic interests in those countries,” said a real estate consultant, requesting anonymity. “This time around, with America intervening in the Iran-Israel war, people feared that a medium to large-scale conflict may lead to an economic slowdown or job cuts. Hence, home hunters decided to keep their purchase decisions on hold.”
In line with the decline in sales, new launches also decelerated by 16% on a year-on-year basis, from approximately 117,165 units in the second quarter of 2024 to around 98,625 units in the second quarter of 2025. Realty hotspots MMR and NCR saw the maximum new supply, accounting for 48% of the total new supply across the seven cities. MMR witnessed a 36% yearly decline and an 8% quarterly decline in new supply.
One of the top developers in the MMR, who recently launched a project in the extended Navi Mumbai area, commented, “When the Ukraine-Russia conflict broke out in February 2022, we thought it would last only a few weeks, but we have been proved wrong. But that conflict did not have as much impact on India’s realty industry as the one in the Middle East, especially with America’s involvement.”
Despite the 20% year-on-year dip in sales across the top seven cities, a 3% uptick this quarter signals renewed momentum. “With home loan rates softening and developers largely holding prices steady, the stage is set for a potential upswing in housing sales in the coming quarters,” Puri concluded optimistically.
Frequently Asked Questions
What is the main reason for the decline in housing sales in India?
The main reasons for the decline in housing sales in India are increasing property prices and global geopolitical tensions, which have pushed homebuyers into a wait-and-watch mode.
Which region experienced the highest decline in housing sales?
The Mumbai Metropolitan Region (MMR) experienced the highest decline in housing sales, with a 25% drop in the second quarter of 2025 compared to the same period in 2024.
How did new launches in the real estate market perform in the second quarter of 2025?
New launches in the real estate market decelerated by 16% on a year-on-year basis, from approximately 117,165 units in the second quarter of 2024 to around 98,625 units in the second quarter of 2025.
Which cities saw an increase in housing sales in the second quarter of 2025?
Chennai, the National Capital Region (NCR), Hyderabad, and Bengaluru saw an increase in housing sales, with increases of 40%, 14%, 9%, and 1%, respectively.
What factors are expected to boost housing sales in the coming quarters?
Home loan rates softening and developers holding prices steady are expected to boost housing sales in the coming quarters, according to Anuj Puri, chairman of Anarock Group.
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