India’s Housing Market Slows Down: What’s Behind the Drop in Home Sales?
India’s housing market witnessed a sharp 20% year-on-year decline in the April–June quarter of 2025, with only 96,285 units sold across the top seven cities, down from 120,335 units in Q2 2024 . This marks the second-lowest quarterly performance in two years, according to real estate consultancy Anarock.
Mumbai: India’s housing market witnessed a sharp 20% year-on-year decline in the April–June quarter of 2025, with only 96,285 units sold across the top seven cities, down from 120,335 units in Q2 2024 . This marks the second-lowest quarterly performance in two years, according to real estate consultancy Anarock.
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Anuj Puri, Chairman of Anarock, said this dip was driven by “war‑like climate” due to both domestic disruptions like Operation Sindoor and international instability from the Iran-Israel conflict, which dampened buyer sentiment.
Regional Breakdown: MMR & Pune Lead, Chennai Posts Gain
- MMR and Pune together contributed over 48% of total sales, selling around 46,685 units in Q2 2025.
- Chennai emerged as the lone outperformer, recording an 11% increase in annual sales, rising from about 5,100 units in Q2 2024 to around 5,660 in Q2 2025.
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New Home Launches Dip, Supply Shifts Toward NCR
New housing projects declined 16% year-on-year, dropping from 117,165 units in Q2 2024 to 98,625 in Q2 2025. While MMR saw a 36% annual fall and 8% drop from the previous quarter, the NCR experienced a robust 69% quarterly jump and 10% annual increase in new supply.
Home Prices Climb Amid Slow Sales
Average residential property prices across the top seven cities rose 11% year-on-year, though the quarterly increase was modest at 1%. Among cities:
- NCR led in growth with a 27% annual jump, followed by Bengaluru at 12%, and Hyderabad at 11%.
Unsold Inventory Slightly Up, With Pune Showing Good Progress
Unsold housing stock stood at 562,000 units at the end of Q2 2025, slightly higher than 560,000 in Q1, but a 3% drop year-on-year . Pune recorded the largest decline in unsold inventory, down 15%, from 94,770 units in Q2 2024 to 80,240 in Q2 2025.
Outlook: Quieter Quarter, Cautious Optimism Ahead
Puri remains cautiously optimistic: “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”.
