India's home sales dip 20% in Q2, but Chennai bucks the trend: Report

India's housing market cooled in Q2 of calendar year 2025 with a sharp sales drop, but Chennai stood out with double-digit growth as other cities struggled with high prices.

India’s housing market saw a sharp 20 per cent year-on-year drop in residential property sales across the top seven cities in the second quarter of calendar year 2025, according to fresh data by ANAROCK Research. Roughly 96,285 units were sold in Q2 2025, compared to 1,20,000 units during the same period last year. However, on a quarter-on-quarter basis, sales ticked up slightly by 3 per cent over Q1 2025.

 

Chennai the outlier

While most cities saw an annual sales slowdown, Chennai emerged as the sole bright spot, posting an 11 per cent year-on-year growth in housing sales. The city clocked around 5,660 unit sales in Q2 2025, up from 5,100 units a year ago, a striking 40 per cent surge compared to Q1 2025.

 

MMR and Pune lead in sales

 

Together, Mumbai Metropolitan Region (MMR) and Pune accounted for nearly half (48 per cent) of all housing sales in Q2 2025:

 

-MMR: 31,275 units sold (down 1 per cent Q-o-Q, 25 per cent Y-o-Y)

 

-Pune: 15,410 units sold (down 4per cent Q-o-Q, 27 per cent Y-o-Y)

 

-Despite the decline, these two cities continue to dominate market share.

 

-Geopolitical tensions, high prices blamed

 

According to Anuj Puri, chairman, ANAROCK Group, “Military escalations and high property prices caused buyers to adopt a wait-and-watch stance.”

 

However, he adds that softening home loan rates and the RBI’s recent repo rate cut are now lifting buyer sentiment.

 

-Fresh launches decline 16 per cent Y-o-Y

 

-Developers also pulled back on launching new projects:

 

-Q2 2025 launches: 98,625 units

 

-Q2 2024 launches: 1.17 lakh units 

 

Key contributors: MMR (28,165 units), NCR (18,760 units), Bengaluru, and Pune

Luxury and ultra-luxury homes (priced above ~1.5 crore) made up 46 per cent of new launches, showing continued strength in this segment. Affordable housing accounted for just 12 per cent of the supply.

 

Price Trends and Inventory

 

Prices rose 11 per cent annually across top cities. NCR saw the highest jump at 27 per cent, followed by Bengaluru (12 per cent).

 

Unsold inventory marginally increased Q-o-Q but dropped 3 per cent Y-o-Y, with Pune seeing a 15 per cent annual reduction.