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Home Sales Decline 14% in June Quarter as Affordability Pressures Impact Buyers

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: Mumbai Metropolitan Region (MMR) Pune 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 .