 "The year was a mixed bag for the real estate industry as housing supply slowed down but record investments came in. Industry experts believe that demand will stabilise as sales are likely to be lower compared to 2023.")
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Annual housing sales in India’s top seven cities declined 20 per cent in the second quarter of calendar year 2025 (Q2 CY25) due to rising property prices and geopolitical tensions, said a report on Thursday, noting that “buyer sentiment is rebounding”.
As many as 96,285 units were sold in the quarter compared to 120,335 units in Q2 2024, said property consultancy Anarock. Sales increased 3 per cent quarter-on-quarter (Q-o-Q). In Q1 CY25, sales were down 28 per cent Y-o-Y.
In Q2 CY25, the Mumbai metropolitan region (MMR) and Pune together accounted for over 48 per cent of total housing sales in the seven cities. As many as 46,685 units were sold in MMR and Pune. Chennai was the only city among the seven to see a yearly rise (11 per cent) in housing sales: from 5,100 units in Q2 CY24 to 5,660 in Q2 CY25.
New supplies declined 16 per cent: from 117,165 units in Q2 CY24 to 98,625 units in Q2 CY25. Realty hotspots MMR and National Capital Region (NCR) accounted for 48 per cent of the total new supply — the most. MMR witnessed a 36 per cent yearly decline and an 8 per cent quarterly decline in new supply.
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However, NCR recorded a 10 per cent Y-o-Y and a 69 per cent Q-o-Q increase in new supplies in Q2 CY25.
"The second quarter of 2025 was a rollercoaster for the Indian housing market, rocked by major military actions at home and abroad,” said Anuj Puri, chairman of Anarock Group.
“The war-like climate pushed homebuyers into wait-and-watch mode, compounding the impact of soaring property prices over the past two years. Now, with domestic tensions easing and the RBI’s repo rate cut injecting fresh optimism, buyer sentiment is rebounding," he said.
"Despite a 20 per cent year-on-year dip in sales across the top seven cities, a 3 per cent uptick this quarter signals renewed momentum. 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."
In Q2 CY25, average residential prices rose by just 1 per cent Q-o-Q but by 11 per cent Y-o-Y. However, the annual price growth rate saw a downward trend in the quarter, the report noted.
Prices in NCR grew by 27 per cent Y-o-Y and 4 per cent Q-o-Q. “If prices remain in check, expect housing sales across major cities to accelerate in the coming quarters,” Puri said.
Unsold housing inventory in the seven cities increased marginally to approximately 562,000 units as of Q2 CY25-end from 560,000 units in Q1 CY25. Annually, the unsold inventory decreased by 3 per cent. Pune had the highest yearly decline, of 15 per cent.
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