Housing sales drop 20% across top 7 cities in Q2 2025 as prices stay high
Housing sales across India's top seven cities declined 20% year-on-year in Q2 2025, with approximately 96,285 units sold compared to over 1.2 lakh units in the same period last year, according to the latest data from ANAROCK Research. On a quarterly basis, however, sales saw a modest 3% rise.'The second quarter of 2025 was a rollercoaster for the Indian housing market,' said Anuj Puri, Chairman, 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.'advertisementPuri attributed the soft Q2 sentiment to geopolitical tensions such as Operation Sindoor and the Iran-Israel conflict, along with continued price escalation across key markets. 'Buyers paused, not disappeared,' he added. 'Now, with domestic tensions easing and the RBI's repo rate cut injecting fresh optimism, sentiment is already beginning to turn.'CITY-LEVEL TRENDS
Among the seven major cities, only Chennai bucked the national trend, recording an 11% annual sales increase to around 5,660 units. The city also saw a sharp 40% rise from the previous quarter. In contrast, sales in MMR and Pune, which together contributed nearly half of all homes sold in Q2, fell by 25% and 27% year-on-year, respectively.Bengaluru saw sales rise slightly (1%) from the previous quarter but was still 8% below last year's numbers. Hyderabad posted a 9% quarterly rise but dropped 27% annually. Kolkata saw the steepest sequential fall at 10%.LAUNCHES AND PRICE TRENDSadvertisementDevelopers launched 98,625 new units in Q2 2025, a 16% drop year-on-year, as they responded to subdued demand. MMR led in fresh supply with over 28,000 units but saw a 36% annual decline. NCR was the only city with a supply uptick—launches rose 69% quarter-on-quarter and 10% year-on-year, driven heavily by high-end projects.'New supply continues to skew towards the upper end of the spectrum,' Puri said. Luxury and ultra-luxury homes (above Rs 1.5 crore) accounted for 46% of new launches, while the affordable segment (below Rs 40 lakh) made up just 12%. 'This clear supply mismatch is pricing out large sections of the middle-income market.'Average residential prices in the top cities rose 11% year-on-year, with NCR leading the surge at 27%, followed by Bengaluru (12%) and Hyderabad (11%). However, quarterly price growth has begun to moderate, coming in at just 1%.'If prices remain in check and financing costs stay favourable, housing demand should bounce back in the second half of the year,' Puri noted.INVENTORY TRENDSUnsold inventory stood at around 5.62 lakh units at the end of Q2 2025, stable compared to Q1 but down 3% year-on-year. Pune saw the sharpest annual decline at 15%, followed by Hyderabad and Bengaluru.advertisement'Developers are focusing on completing existing projects and keeping a tight lid on launches in weaker markets,' said Puri. 'This is a healthy sign—overbuilding amid slow demand would only create more stress.'Despite the year-on-year decline, analysts expect the housing market to pick up in the second half of 2025, driven by lower home loan rates, stable prices, and improving consumer confidence.'The 3% quarterly uptick is an early sign of recovery,' said Puri. 'With macro indicators stabilising, we expect demand to rebound gradually—especially if developers recalibrate their offerings toward actual affordability.'- Ends
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