Indian Real Estate Market Sees 20% Sales Decline in Q2 2025; Chennai Shines
The second quarter of 2025 witnessed a significant 20% decline in housing sales across major Indian cities, with Chennai being the only exception, recording a 11% increase in demand.
Real EstateHousing MarketChennaiProperty PricesNew LaunchesReal Estate NewsJun 26, 2025
Of all the cities, only Chennai witnessed an 11% year-on-year rise in housing sales, with approximately 5,660 units sold in Q2 2025, compared to 5,100 units in Q2 2024. On a quarter-on-quarter basis, the city saw a sharp 40% jump in sales, it said.
New supply across cities continued to be dominated by luxury and ultra-luxury housing (priced above ₹1.5 crore), accounting for 46% of overall launches. The mid-segment (₹40 lakh–₹80 lakh) and premium segment (₹80 lakh–₹1.5 crore) each held a 21% share, while affordable housing comprised just 12% of the new supply, it noted.
Average residential prices across the top cities rose 11% year-on-year, led by NCR with a 27% surge, followed by Bengaluru (12%) and Hyderabad (11%). However, on a quarterly basis, price growth moderated to just 1%, the report noted.
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 wait-and-watch mode, compounding the impact of soaring property prices over the past two years. Now, with domestic tensions easing and the RBI’s repo rate cut injecting fresh optimism, buyer sentiment is rebounding,” said Anuj Puri, chairman, ANAROCK Group.
Despite a 20% year-on-year dip in sales across the top 7 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.
Anarock also noted that the average residential prices rose by a meagre 1% quarterly, but the annual rise has been 11% in the top 7 cities. The annual growth rate has certainly seen a downward trend in the quarter.
NCR led the pack in Q2 2025 with a striking 27% year-on-year surge and a 4% quarterly rise in residential prices. Bengaluru followed with a robust 12% annual jump, underscoring strong momentum in key markets. If prices remain in check, expect housing sales across major cities to accelerate in the coming quarters.
On the demand side, housing sales in Delhi-NCR fell 14% in April-June to 14,255 units from 16,550 units in the year-ago period. In MMR, the sales declined 25% to 31,275 units from 41,540 units, the report noted. Bengaluru saw an 8% fall in sales to 15,120 units from 16,355 units, while Pune saw a 27% fall to 15,410 units from 21,145 units. In Hyderabad, sales declined by 27% to 11,040 units from 15,085 units. Housing sales in Kolkata dipped 23% to 3,525 units from 4,560 units, it said.
However, housing sales in Chennai rose 11% to 5,660 units during April-June 2025 from 5,100 units in the same period last year.
New launches decelerated across the country by 16% Y-o-Y – from approximately 1,17,165 housing units in Q2 2024 to approximately 98,625 housing units in Q2 2025. The top 7 cities saw around 98,625 new units launched in Q2 2025, against 1,17,165 units in Q2 2024 - a 16% decline. The key cities contributing to new launches in Q2 2025 were MMR (Mumbai Metropolitan Region), NCR, Pune, and Bengaluru, which together accounted for 78% of the supply addition.
MMR saw approximately 28,165 units launched in Q2 2025 – decreasing by 8% over Q1 2025 and over 36% on a yearly basis. More than 59% of the new supply was added in the sub-₹80 lakh budget segment, it said. NCR saw a whopping 69% increase in new launches against Q1 2025 with approximately 18,760 units launched in Q2 2025. On a yearly basis, there was a 10% increase. A whopping 82% new supply in Q2 was added in the luxury segment priced more than ₹1.5 crore. Bengaluru added approximately 15,345 units in Q2 2025, declining quarterly by 26%. On a yearly basis, there was a 4% decline. Approximately 92% of the new supply was in the premium and luxury segment priced ₹80 lakh onwards, the Anarock report said.
Frequently Asked Questions
Why did housing sales decline in Q2 2025?
Housing sales declined in Q2 2025 due to a combination of factors, including a war-like climate that pushed buyers into a wait-and-watch mode, high property prices, and economic uncertainty.
Which city saw an increase in housing sales?
Chennai was the only city to see an increase in housing sales, recording an 11% year-on-year rise in demand.
What segments dominated new housing launches?
Luxury and ultra-luxury housing (priced above ₹1.5 crore) dominated new launches, accounting for 46% of overall launches, followed by the mid-segment and premium segment, each holding a 21% share.
How did residential prices perform in Q2 2025?
Average residential prices across the top cities rose 11% year-on-year, with NCR leading the pack with a 27% surge. However, on a quarterly basis, price growth moderated to just 1%.
What factors are expected to boost the housing market in the coming quarters?
With the easing of domestic tensions, the RBI’s repo rate cut, and softening home loan rates, buyer sentiment is expected to improve, potentially leading to an upswing in housing sales in the coming quarters.
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