Advertisement
India's residential real estate sector witnessed a recalibrated momentum during Q2 2025, characterised by shifting developer strategies, premium housing focus, and uneven performance across metros. According to ANAROCK's latest findings, while overall sales dropped by 20% year-on-year, the total value of housing sales marginally rose by 1%, reflecting a tilt towards high-value homes. Mumbai led in inventory levels and pricing, whereas NCR and Pune presented mixed outcomes driven by affordability challenges and inventory absorption trends.
India's residential property market during Q2 2025 displayed a nuanced adjustment, shaped by macroeconomic uncertainties, changing buyer preferences, and regional dynamics. As per ANAROCK's Q2FY25 Residential Market report, home sales fell by 20% year-on-year to 96,300 units, though the total value of sales slightly improved by 1% to INR 1.47 lakh crore. This trend indicated a buyer shift towards quality housing, particularly in the premium segment. Concurrently, new launches declined by 16% to about 98,600 units, as developers slowed aggressive expansion and focused on project completion. Despite the reduction, both sales and launches remained above pre-COVID benchmarks, underlining a resilient post-pandemic market environment. Advertisement
In the Mumbai Metropolitan Region (MMR), property registrations during June 2025 stood at 11,211, slightly lower than the same period in 2024. However, revenue collections stayed nearly consistent at INR 1,004 crore, just a marginal 1% dip compared to the previous year. Anuj Puri, Chairman of ANAROCK Group, noted that this performance reflected the market's underlying strength, even with a slight cooling in transaction pace.
MMR retained its leadership status with 28,150 new launches and 31,300 units sold, accounting for approximately 29% and 33% of pan-India figures, respectively. Nevertheless, both figures recorded declines compared to Q2 2024-36% in new supply and 25% in sales. MMR reported the highest unsold inventory at 177,000 units and the highest average price at INR 17,100/sf, up 9% annually. This led to an inventory overhang of 16 months, suggesting a stable yet closely watched market. Rajat Khandelwal, Group CEO of Tribeca Developers, remarked that Mumbai's momentum remained intact, supported by transformative infrastructure and deep-seated demand, especially among younger professionals seeking new asset classes like pre-leased serviced apartments.
The National Capital Region (NCR) followed as the second-most active metro in terms of supply, registering 18,800 new launches-a 69% rise over the previous quarter and 11% up year-on-year. Sales rose by 14% from the prior quarter to 14,250 units, although they declined by 14% annually. A 27% jump in average pricing to INR 8,650/sf impacted affordability, while unsold stock stood at 89,000 units. The inventory overhang increased to 19 months, reflecting cautious optimism amidst high-end inventory build-up.
Pune, meanwhile, demonstrated steady fundamentals despite a slowdown. The city recorded 14,200 new launches and 15,400 units sold-down 25% and 27%, respectively, compared to Q2 2024. However, Pune achieved the largest annual decline in available inventory, now at 80,250 units-a 15% reduction, indicating strong absorption. Prices rose moderately by 6% to INR 7,900/sf, and the inventory overhang held at 14 months-the lowest among the metros-indicating relatively swift project movement.
MMR remained at the forefront in terms of activity and pricing, although affordability constraints emerged. NCR and Pune illustrated region-specific dynamics-while NCR saw aggressive supply amidst price hikes, Pune balanced absorption and price stability. Despite a dip in transaction volumes, the resilience of market fundamentals and sustained end-user demand suggest cautious optimism going forward.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
