India's Housing Sales Decline 20% Across 7 Cities, but Chennai, NCR, and Luxury Homes Show Resilience

Chennai Outperforms with 11% Growth

Defying the broader decline, Chennai saw housing sales rise 11% year-on-year from approximately 5,100 units to 5,660 units. The city also recorded a 40% quarter-on-quarter increase in demand. Analysts say the growth was led by mid and premium housing launches that attracted buyers priced out of other metros.

MMR, Pune Drive Nearly Half of All Sales

Mumbai Metropolitan Region (MMR) and Pune together accounted for 48% of total Q2 sales. MMR led with approximately 31,275 units sold, while Pune followed with 15,410 units. However, both markets posted steep year-on-year declines of 25% and 27% respectively.

New Launches Fall, Except in NCR

New housing supply across the top cities dropped 16% year-on-year to 98,625 units. Developers remained cautious amid weaker sentiment. However, the National Capital Region saw a 69% quarter-on-quarter increase and a 10% annual rise in new launches, driven by the luxury segment.

Luxury Leads Fresh Supply Mix

Luxury and ultra-luxury homes priced above Rs 1.5 crore accounted for 40% of new launches across the top cities. Mid-segment housing priced between Rs 40 lakh and Rs 80 lakh, and premium housing priced up to Rs 1.5 crore, held 21% share each. The share of affordable housing below Rs 40 lakh dropped to 12%.

Prices Rise 11% Annually; NCR Tops

Average property prices across the top seven cities rose 11% year-on-year and 1% quarter-on-quarter. NCR saw the highest jump with a 27% rise, followed by Bengaluru at 12% and Hyderabad at 11%. According to ANAROCK Chairman Anuj Puri, the recent RBI rate cut may help temper further price hikes.

Unsold Stock Falls 3% Y-O-Y

Unsold inventory stood at approximately 5.62 lakh units at the end of Q2 2025, marginally higher than the previous quarter but 3% lower year-on-year. Pune led in inventory reduction with a 15% drop from 94,770 units in Q2 2024 to 80,240 units in Q2 2025.