India's Top 9 Cities Witness Steep Decline in Housing Sales
India’s residential real estate market has seen a significant downturn in the second quarter of 2025, with housing sales in the top nine cities dipping below the 1 lakh unit mark for the first time since 2021.
Housing SalesReal Estate MarketProperty MarketPropequityMarket CorrectionReal Estate NewsJun 22, 2025
This decline, along with a sharp drop in new launches, signals a period of market consolidation after two years of aggressive growth in key urban centres.
According to a report by NSE-listed real estate data analytics firm PropEquity, housing sales in Q2 2025 (April–June) stood at 94,864 units, marking a 19% year-on-year decline from 1,16,432 units in Q2 2024. New housing supply plunged even further — by 30% YoY — to 82,027 units, down from 1,17,208 units in the same quarter last year.
This is also the fourth consecutive quarter where new housing supply has remained under the 1 lakh unit threshold — indicating that developers are taking a more cautious approach amid inventory pressures and demand normalisation.
“This is the first time since Q3 2021 that sales have dipped below the 1 lakh unit mark. With supply also remaining subdued for the fourth straight quarter, the market is clearly undergoing a stabilisation phase,” said Samir Jasuja, Founder and CEO of PropEquity.
“Cities like Mumbai, Bengaluru and Navi Mumbai, which witnessed high activity in 2023 and 2024, are now returning to more sustainable transaction levels. Delhi-NCR, however, continues to show strong momentum, particularly due to supply additions in Ghaziabad and Greater Noida,” he added.
What's Driving the Decline?
The fall is primarily attributed to market stabilisation in over-performing regions. Cities like Mumbai, Navi Mumbai and Thane, which had seen a surge in both supply and sales over the last two years, are now experiencing a correction.
Affordability pressures, inventory overhang in certain pockets, and selective buyer sentiment amid high home loan interest rates and macroeconomic factors may also be contributing to the slowdown.
On the supply side, developers appear to be realigning launch strategies, focusing on offloading existing inventory and recalibrating pipeline projects.
City-Wise Breakdown – Sales (Q2 2025)
| City | Q2 2024 | Q2 2025 | YoY Change |
|-------------|---------|---------|------------|
| Delhi-NCR | 10,114 | 11,703 | +16% |
| Chennai | 4,927 | 5,354 | +9% |
| Hyderabad | 14,704 | 11,815 | -20% |
| Bengaluru | 15,582 | 14,676 | -6% |
| Kolkata | 4,826 | 4,449 | -8% |
| Pune | 23,429 | 17,196 | -27% |
| Mumbai | 12,114 | 8,006 | -34% |
| Navi Mumbai | 8,224 | 6,833 | -17% |
| Thane | 22,512 | 14,832 | -34% |
| Total | 1,16,432| 94,864 | -19% |
City-Wise Breakdown – New Supply (Q2 2025)
| City | Q2 2024 | Q2 2025 | YoY Change |
|-------------|---------|---------|------------|
| Delhi-NCR | 10,084 | 13,823 | +37% |
| Chennai | 6,123 | 6,463 | +6% |
| Hyderabad | 8,886 | 10,544 | +19% |
| Kolkata | 4,131 | 2,672 | -35% |
| Pune | 24,803 | 14,845 | -40% |
| Mumbai | 12,610 | 4,949 | -61% |
| Navi Mumbai | 10,421 | 4,592 | -56% |
| Thane | 23,794 | 9,896 | -58% |
| Bengaluru | 16,356 | 14,243 | -13% |
| Total | 1,17,208| 82,027 | -30% |
Why This Matters: Market Signals for Stakeholders?
This dip in housing sales and new launches is significant for both developers and homebuyers:
For developers, it suggests that inventory planning and project timing will be critical going forward. There is a visible shift towards demand-driven launches, rather than speculative construction.
For homebuyers, especially end-users, this phase could bring better negotiation power, with lower supply ensuring that developers stay competitive on pricing and offers.
For investors and policy-makers, this trend reflects a cooling-off period post the housing boom during and after the pandemic recovery. It underlines the need for balanced growth, policy stability, and affordable housing focus.
While short-term numbers show a decline, experts believe that this moderation is healthy, as it allows markets to align with real demand and purchasing power.
PropEquity is a PE Analytics Ltd., through its PropEquity platform, is India’s largest online real estate data and analytics platform. Covering over 1.7 lakh projects, 57,000+ developers, and 44 cities, it offers deep insights backed by more than 17 years of catalogued data. The platform adds about 700 new projects every month and serves as a business intelligence tool for the real estate ecosystem.
Frequently Asked Questions
What is the current state of housing sales in India's top cities?
Housing sales in India’s top nine cities have fallen below the 1 lakh unit mark for the first time in 14 quarters, marking a significant correction in the residential real estate market.
What factors are driving the decline in housing sales?
The decline is primarily attributed to market stabilisation in over-performing regions, affordability pressures, inventory overhang in certain areas, and selective buyer sentiment due to high home loan interest rates and macroeconomic factors.
How are developers responding to the market changes?
Developers are taking a more cautious approach, focusing on offloading existing inventory and recalibrating pipeline projects. There is a visible shift towards demand-driven launches rather than speculative construction.
What are the implications for homebuyers?
Homebuyers, especially end-users, may benefit from this phase as it could bring better negotiation power with developers, who will need to stay competitive on pricing and offers.
What is PropEquity and what role does it play in the real estate market?
PropEquity is India’s largest online real estate data and analytics platform, covering over 1.7 lakh projects, 57,000+ developers, and 44 cities. It offers deep insights backed by more than 17 years of catalogued data, serving as a business intelligence tool for the real estate ecosystem.
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