Housing Sales Drop 20% Across Top 7 Cities in Q2 2025 as Prices Stay High
Housing Sales Drop 20% Across Top 7 Cities in Q2 2025 as Prices Stay High
A sluggish Q2 masked early signs of recovery in India’s housing market, with rising prices, cautious buyers, and skewed supply dampening sales but softening rates and easing tensions may turn the tide.
PUNE – The Indian housing market saw a sharp slowdown in the first half of 2025, with homebuyers pulling back amid high property prices, rising interest rates, and global uncertainties. According to data from ANAROCK Research, housing sales across India’s top seven cities dropped 20% year-on-year in Q2 2025, with only 96,285 units sold compared to over 1.2 lakh units during the same quarter last year.
In Pune, the mood has been particularly cautious. Buyers picked up 31,510 apartments between January and June, a 29% drop from the 44,135 units sold during the same period in 2024. According to Bharat Agarwal, President of NAREDCO Pune, while the decline is significant, there are signs of revival.
“The office market in Pune is at a lifetime high, indicating a rise in employment. We expect residential sales to recover in the second half of the year,” Agarwal said.
The Mumbai Metropolitan Region (MMR) and Pune, which together accounted for nearly half of all residential sales in Q2, saw declines of 25% and 27%, respectively. Industry experts blame the dip on a combination of rising apartment sizes, interest rate pressures, stagnant income growth, and a geopolitical climate that has left consumers wary of big-ticket purchases.
“The second quarter of 2025 was a rollercoaster for the Indian housing market,” 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.”
Chennai, however, bucked the trend. The city reported an 11% rise in new home sales over the last quarter, emerging as the sole major metro to post growth.
Despite the broader decline, there are early signs of a potential rebound. The Reserve Bank of India’s three recent policy rate cuts, bringing the repo rate down from 6.5% to 5.5%, have been welcomed by developers and buyers alike.
“This move could be a catalyst for lower borrowing costs, translating into reduced EMIs and improved homebuyer sentiment. Hopefully, banks will actively pass on the benefits to consumers,” said Managing Director of Gera Developments.
On a quarterly basis, housing sales across metros saw a modest 3% increase, hinting at stabilisation. Industry insiders remain cautiously optimistic, expecting improved affordability, softened interest rates, and stronger job growth to drive a market rebound in the second half of the year.
