Rising Prices and Political Tensions Drag Down Housing Sales in Major Indian Cities
Residential property sales in India's top seven markets declined by 20% year-on-year in April-June 2025, primarily due to soaring prices and political tensions.
Residential PropertyRealty SectorHousing SalesProperty PricesTop CitiesReal Estate PuneJun 26, 2025
Hyderabad and Pune saw the highest fall in sales at 27% in April-June 2025, while Mumbai Metropolitan Region (MMR) saw a 25% drop in sales. Delhi-NCR saw a drop of 14%, Kolkata 23% and Bengaluru 8%, the report said. Chennai was the only city to see a year-on-year rise (11%) in housing sales in April-June 2025 — from nearly 5,100 units to about 5,660 units — Anarock said. Sequentially, housing sales in Chennai jumped 40%.
According to the report, MMR and Pune together accounted for over 48% – nearly 46,685 units – of total sales in the top seven cities. Average residential prices rose 11% y-o-y. Sequentially, the increase was a meagre 1%, it said. Delhi-NCR led the pack with a 27% surge y-o-y, followed by Bengaluru (12%).
New launches fell by 16% y-o-y — from nearly 117,165 units in Q2 2024 to about 98,625 units in Q2 2025. MMR witnessed a 36% y-o-y decline in new launches. Delhi-NCR witnessed a 10% y-o-y jump in new supply. “The second quarter of 2025 was a roller coaster 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,” said Anuj Puri, chairman, Anarock. With tensions easing and the RBI’s repo rate cut injecting fresh optimism, buyer sentiment is rebounding, Puri added. “If prices remain in check, expect housing sales across major cities to accelerate in the coming quarters,” he said.
Sanjay Dutt, managing director and CEO at Tata Realty & Infrastructure, said new realty launches were low due to reasons such as peak prices in some cities, markets exhausting client base, and pending judicial scrutiny of the issue of environmental clearance.
Frequently Asked Questions
What caused the decline in residential property sales in India?
The decline in residential property sales in India's top seven markets was primarily due to rising prices and the India-Pakistan conflict, which created a weak demand scenario.
Which cities saw the highest fall in housing sales?
Hyderabad and Pune saw the highest fall in sales at 27% in April-June 2025, followed by Mumbai Metropolitan Region (MMR) with a 25% drop.
How did Chennai perform in housing sales?
Chennai was the only city to see a year-on-year rise (11%) in housing sales in April-June 2025, with sales increasing from nearly 5,100 units to about 5,660 units.
What factors contributed to the low new realty launches?
New realty launches were low due to peak prices in some cities, markets exhausting the client base, and pending judicial scrutiny of environmental clearance issues.
What is the outlook for the Indian housing market in the coming quarters?
With tensions easing and the RBI’s repo rate cut injecting fresh optimism, the outlook for the Indian housing market is positive, and housing sales are expected to accelerate if prices remain in check.
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