India’s residential real estate market experienced a broad-based slowdown in the second quarter of 2025, with key cities such as Mumbai, Thane, Navi Mumbai, Pune, Hyderabad, and Bengaluru reporting noticeable dips in both housing sales and new supply. According to new data from real estate analytics firm PropEquity, a combination of market correction, investor pullback, and geopolitical factors has contributed to the subdued performance. While some markets declined sharply, others showed resilience or even growth—especially Delhi NCR and Chennai.
Key Trends in Q2 2025 Housing Market
📉 Sharp Decline in Mumbai Metropolitan Region (MMR)
- Mumbai:
- Housing sales fell 34% YoY to 8,006 units (from 12,114 in Q2 2024).
- New launches plummeted 61% to 4,949 units.
- Thane:
- Sales dropped 34%, with new supply falling 58%.
- Navi Mumbai:
- Reported a 17% dip in sales and a 56% drop in supply.
🏙️ Pune Market Dips
- Sales fell 27%.
- New housing supply declined 40% year-on-year.
🌇 Southern Markets: Hyderabad & Bengaluru
- Hyderabad:
- Sales fell 20%, even as new supply rose 19%.
- Bengaluru:
- Sales were down just 6%.
- Supply dipped 13%, indicating relative market stability.
🏠 Eastern India: Kolkata
- Kolkata recorded an 8% decline in sales.
- New launches dropped a sharp 35%.
🏗️ Positive Momentum in Delhi NCR and Chennai
- Delhi NCR:
- Sales up 16% YoY to 11,703 units.
- Supply surged 37% to 13,823 units.
- Chennai:
- Sales rose 9% to 5,354 units.
- Supply increased 6% to 6,463 units.
Summary Table: Real Estate Trends in Q2 2025
| City | Sales YoY Change | Supply YoY Change |
|---|---|---|
| Mumbai | -34% | -61% |
| Thane | -34% | -58% |
| Navi Mumbai | -17% | -56% |
| Pune | -27% | -40% |
| Hyderabad | -20% | +19% |
| Bengaluru | -6% | -13% |
| Kolkata | -8% | -35% |
| Delhi NCR | +16% | +37% |
| Chennai | +9% | +6% |
Industry Insights and Expert Quotes
Samir Jasuja, Founder & CEO of PropEquity:
“There has been a decline in both sales and supply on a QoQ basis in Mumbai, Bengaluru and Navi Mumbai as these cities recorded their highs in 2023 and 2024. Delhi-NCR has witnessed the maximum growth in this quarter owing to a rise in supply in Ghaziabad and Greater Noida.”
He added:
“Prices have risen 50–200% between 2021 and 2025, so investors are also backing off. Correction will continue, though things may pick up during the festive season.”
Bhavesh Shah, Joint Managing Director, Today Group:
“There may be a slight dip in certain pockets at the moment either due to the global political scenario or the forthcoming festivities. However, we feel the current market conditions are temporary and micro-market specific.”
Shah emphasized:
“Real estate in 2025 will set a new record altogether… There has been a steady response across our projects in Navi Mumbai due to location advantage and built-in equity.”
FAQs
1. Why did housing sales decline in Mumbai and Pune in Q2 2025?
The decline is attributed to market correction after unprecedented growth from 2021–2024 and high price levels deterring investors.
2. Which cities showed positive growth in Q2 2025?
Delhi NCR and Chennai saw positive trends in both housing sales and new supply, according to PropEquity.
3. What is causing the slowdown in the Indian real estate market?
Experts cite a combination of price corrections, investor caution, and seasonal wait-and-watch behavior ahead of festive buying.
4. Is Hyderabad still adding new real estate projects despite sales drop?
Yes, Hyderabad’s new supply grew by 19% YoY, despite a 20% drop in sales—indicating long-term developer confidence.
5. When is the market expected to recover?
Analysts believe activity may pick up during the upcoming festive season in late 2025.