Pune, Hyderabad Hit Hard as Home Sales Tumble, Will Property Rates Finally Drop?
Pune’s Property Boom Continues: ₹33,000 Cr Homes Sold In H1 2025, Says CREDAI-CRE Matrix Â
Housing sales in India dropped by 20% in the April to June quarter of 2025, compared to the same period last year. The decline has been linked to rising property prices and ongoing geopolitical tensions that have affected buyer sentiment across the country.
According to a new report by a real estate consultancy, housing sales in the country’s top seven cities dropped to 96,285 units, compared to 1,20,335 units sold in the same quarter last year. The decline in sales was seen in six out of the seven key cities, with only Chennai showing growth in demand.
Cities like Pune and Hyderabad saw the steepest drops, each witnessing a fall of 27% in home sales. Other cities, including Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, and Kolkata, also recorded a significant fall in numbers. Chennai stood out as the only city where demand rose, defying the national trend.
Price Hike and Unrest Impact Buyer Sentiment
The sharp 11% rise in property prices over the past year played a major role in the slowdown. The combination of high costs and uncertain political and military situations at home and abroad led many homebuyers to delay their purchase decisions. This “wait-and-watch” approach has been especially visible in cities that had previously seen a strong surge in demand.
The last two years have seen continuous price hikes across several regions, putting pressure on affordability for the average buyer. Along with that, ongoing conflict-like situations globally and security concerns within the country added to the uncertainty, pushing many to postpone buying property.
New Project Launches Also See a Dip
The impact has not been limited to buyers alone. Developers also showed signs of caution during the quarter. New project launches fell by 16% compared to the same quarter last year. Mumbai reported the highest drop in new housing project launches, falling by 36%. On the other hand, some cities like Delhi-NCR, Chennai, and Kolkata saw an increase in new launches, with Chennai reporting the highest growth at 65%.
The slowdown in new launches suggests that developers are holding back on fresh investments and awaiting more stability in the market before expanding further.
Possible Recovery on the Horizon
Despite the current slowdown, there are signs that the housing market could improve in the coming months. The Reserve Bank of India recently cut its repo rate by 50 basis points, a move aimed at making home loans cheaper and boosting overall demand. Along with this, the central bank also urged commercial banks to lower their lending rates to ensure faster and wider transmission of the policy rate cut.
With interest rates on home loans likely to soften and developers expected to keep prices stable, the conditions may soon favour a rebound in sales. Additionally, with domestic tensions easing, the overall sentiment among homebuyers could begin to recover.
Experts believe that the current dip may be temporary, and the market may witness a turnaround in the upcoming quarters if favourable conditions continue.
