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MUMBAI: Looks like the summer wasn’t just hot outside India’s housing market felt the burn too. India’s eight biggest housing markets hit a bit of a speed bump in Q2 2025, with home sales dropping 14 per cent year-on-year, according to the latest Real Insight Residential report by Proptiger.com. The slowdown is largely attributed to affordability concerns, which nudged many buyers into pause mode.
The dip was particularly sharp in Mumbai Metropolitan Region (MMR), down a hefty 32 per cent, and Pune, which saw a 27 per cent decline. But it wasn’t all doom and gloom cities like Bengaluru (+16 per cent), Chennai (+33 per cent), and Kolkata (+19 per cent) bucked the trend, showing that not every buyer had cold feet.
On a quarter-on-quarter basis, sales across the board stayed flat with 97,674 units sold, as per Proptiger, which is part of REA India (also the parent of Housing.com). MMR, Pune and Bengaluru collectively accounted for 59 per cent of the total quarterly sales.
“This short-term dip is more of a recalibration than a retreat,” said Proptiger.com head of sales Sridhar Srinivasan. “Yes, affordability is squeezing budget buyers, but demand is intact, and developers are clearly still bullish especially in the premium segment.”
Supply-side sentiment mirrored the demand softening, with new launches falling 10 per cent QoQ and 17 per cent YoY. Mumbai (-43 per cent), Pune (-39 per cent) and Bangalore (-2 per cent) all saw dips, while Chennai and Hyderabad posted impressive gains (+64 per cent and +69 per cent, respectively). Kolkata saw a 192 per cenrt surge—albeit from a very low base.
Interestingly, the report points out that geopolitical tensions (read: India-Pakistan skirmishes) also dented buyer sentiment during the April–June period, causing many to adopt a wait-and-watch stance.
| City | Sales YoY Change | Launches YoY Change |
|---|---|---|
| Mumbai | -32% | -43% |
| Pune | -27% | -39% |
| Bangalore | +16% | -2% |
| Chennai | +33% | +64% |
| Kolkata | +19% | +192% |
| NCR | -9% | +29% |
Despite the turbulence, Proptiger notes that the long-term market outlook remains upbeat, buoyed by solid macro fundamentals and continued developer interest, especially in premium and mid-income housing.
So while this quarter may be slower than usual, it seems the foundation of India’s housing story is far from shaky. Just a little pause before the next big push.
