Mumbai, 22 June 2025 – Housing sales across India’s top nine cities have witnessed a significant decline in the second quarter of 2025, with both demand and new supply shrinking sharply. According to a recent analysis by PropEquity, total housing sales dropped by 19% year-on-year to 94,864 units during the April–June period, while new launches saw a steeper decline of 30%, falling to 82,027 units. This is the first time since the third quarter of 2021 that quarterly housing sales dipped below the 100,000-unit mark. Moreover, this also marks the fourth consecutive quarter where supply has remained under the 100,000-unit threshold.
Among the cities surveyed, Mumbai recorded the sharpest contraction. Sales in the city plummeted by 34% to 8,006 units, while new launches nosedived 61% to just 4,949 units. Thane followed a similar trajectory, with a 34% drop in sales and a 58% fall in supply. Bengaluru reported a 6% year-on-year drop in sales, totaling 14,676 units, while new supply in the city declined by 13% to 14,243 units. In Hyderabad, although sales decreased by 20% to 11,815 units, developers increased new supply by 19%, reaching 10,544 units.
Navi Mumbai and Pune were also hit hard. Navi Mumbai saw a 17% drop in sales, closing at 6,833 units, and new supply plunged by 56% to 4,592 units. Pune experienced a 27% drop in housing sales, down to 17,196 units, with new supply decreasing 40% to 14,845 units. These figures point to a broader trend of market correction after a period of aggressive expansion and record-high transactions in the post-pandemic phase.
Interestingly, only Delhi-NCR and Chennai bucked the trend with positive growth. Delhi-NCR registered a 16% increase in sales, accompanied by a 37% surge in new supply. Chennai’s housing market grew more modestly, with a 9% increase in sales and a 6% rise in supply. These cities appear to be benefiting from comparatively affordable property rates and improving infrastructure, particularly in suburban and peripheral regions.
Samir Jasuja, CEO of PropEquity, commented that the real estate market is stabilizing after the boom years of 2023 and early 2024. He noted that this quarter’s decline in sales below 100,000 units reflects a return to more sustainable levels of demand. Jasuja also highlighted that the positive performance in Delhi-NCR is largely attributed to robust development in areas such as Ghaziabad and Greater Noida, where inventory and buyer interest remain high.
Looking ahead, developers in cities like Mumbai appear to be holding back on new launches amid a cautious buyer sentiment. Hyderabad’s developers, on the other hand, seem optimistic, adding fresh supply despite the drop in sales. Cities like Bengaluru, Chennai, Pune, and Navi Mumbai are undergoing a phase of normalization after their recent peaks, with reduced activity likely reflecting market recalibration rather than distress.
In conclusion, India’s housing market saw a marked slowdown in Q2 2025. While most cities faced significant contractions in both sales and supply, Delhi-NCR and Chennai demonstrated resilience. With interest rates, economic stability, and regional policy changes poised to influence future trends, stakeholders will be closely monitoring the next few quarters to assess whether this is a temporary cooling or a longer-term shift in momentum.
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