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Home Sales Decline 14% in June Quarter as Affordability Pressures Impact Buyers
By PropertyGeld Editorial Team
Published on PropertyGeld:
July 14, 2025: Residential property sales across India’s eight major housing markets fell 14% year-on-year during the April–June 2025 quarter, as rising property prices and affordability concerns led many potential buyers to delay their purchase decisions.
According to the latest residential market analysis by a real estate transaction and advisory firm, buyers in several cities adopted a “wait-and-watch” approach, causing a slowdown in overall housing demand compared with the same period last year.
Mixed Performance Across Major Cities
The report shows that most cities experienced a drop in home sales, except Bengaluru, Chennai, and Kolkata, where sales recorded growth during the quarter.
The largest decline in property sales was recorded in:
-
Mumbai Metropolitan Region (MMR) – down 32% annually
-
Pune – down 27% year-on-year
However, on a quarter-on-quarter basis, the overall housing sales numbers remained largely unchanged, with several markets posting moderate growth.
The biggest contributors to overall housing sales during the quarter were:
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Mumbai Metropolitan Region (MMR)
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Pune
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Bengaluru
Together, these markets accounted for around 59% of total residential sales across the eight major cities.
Buyer Caution Driven by Affordability Issues
Real estate experts say the short-term decline in housing sales reflects market recalibration rather than weakening demand. Rising property prices have particularly impacted budget and mid-income buyers, making affordability a key concern.
Despite the slowdown, the housing market continues to show strong long-term demand, supported by urbanisation, income growth, and rising aspirations for homeownership.
Developers also remain active in the market, especially in the premium housing segment, with several strategic land acquisitions taking place during the first half of 2025. This indicates continued confidence in the long-term growth of India’s residential real estate sector.
City-Wise Home Sales Data (April–June 2025)
| City | Q2 2025 Sales | Q1 2025 Sales | Q2 2024 Sales | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Ahmedabad | 9,451 | 10,730 | 9,500 | -12% | -1% |
| Bengaluru | 15,628 | 11,731 | 13,495 | +33% | +16% |
| Chennai | 5,283 | 4,774 | 3,984 | +11% | +33% |
| Delhi NCR | 10,051 | 8,477 | 11,065 | +19% | -9% |
| Hyderabad | 11,513 | 10,647 | 12,296 | +8% | -6% |
| Kolkata | 3,847 | 3,803 | 3,237 | +1% | +19% |
| Mumbai | 25,939 | 30,705 | 38,266 | -16% | -32% |
| Pune | 15,962 | 17,228 | 21,925 | -7% | -27% |
| Total | 97,674 | 98,095 | 113,768 | 0% | -14% |
New Housing Supply Also Declines
The report also highlights a decline in new housing project launches during the April–June quarter. Both quarter-on-quarter and year-on-year supply levels dropped, reflecting cautious developer sentiment amid changing market conditions.
Geopolitical tensions and broader global uncertainties also influenced buyer sentiment during the quarter.
City-Wise New Launch Data (April–June 2025)
| City | Q2 2025 Launches | Q1 2025 Launches | Q2 2024 Launches | QoQ | YoY |
|---|---|---|---|---|---|
| Ahmedabad | 4,211 | 2,384 | 6,533 | +77% | -36% |
| Bengaluru | 12,307 | 18,183 | 12,564 | -32% | -2% |
| Chennai | 7,606 | 4,070 | 4,633 | +87% | +64% |
| Delhi NCR | 10,421 | 7,952 | 8,053 | +31% | +29% |
| Hyderabad | 10,748 | 10,156 | 6,365 | +6% | +69% |
| Kolkata | 2,202 | 3,534 | 753 | -38% | +192% |
| Mumbai | 23,062 | 31,322 | 40,462 | -26% | -43% |
| Pune | 13,581 | 15,543 | 22,314 | -13% | -39% |
| Total | 84,138 | 93,144 | 101,677 | -10% | -17% |
Housing Affordability Remains a Key Challenge
Market analysts believe that the slowdown in both sales and new project launches is largely due to rising property prices after a prolonged growth cycle. This has significantly affected the affordable housing segment, making it harder for many buyers to enter the market.
Despite these challenges, India’s overall economic indicators remain strong, suggesting that housing demand is likely to recover once affordability improves and market conditions stabilise.