Mumbai: Increasing property prices and geopolitical tensions across the world have hit housing sales in seven metropolitan cities in India, with sales dropping by 20% in the second quarter of 2025 compared to the second quarter of 2024. The Mumbai Metropolitan Region (MMR) was hit the hardest, with housing sales dropping by 25%, from 41,540 units in the second quarter of 2024 to 31,275 units in the second quarter of 2025, according to a report by real estate consulting firm, Anarock.
Approximately 96,285 houses were sold in the second quarter (April-June) of 2025 across the seven metropolitan cities – National Capital Region, MMR, Bengaluru, Pune, Hyderabad, Chennai and Kolkata, compared to 120,335 houses sold in the same period in 2024.
Housing sales in the seven cities increased marginally by 3% compared to the first quarter of 2025, the report shows. Chennai, the National Capital Region (NCR), Hyderabad and Bengaluru witnessed a spike in sales by 40%, 14%, 9% and 1% respectively. But in Kolkata, Pune and the MMR, housing sales dropped by 10%, 4% and 1%, respectively.
“The second quarter of 2025 was a rollercoaster for the Indian housing market, rocked by major military actions at home and abroad. The war-like climate pushed homebuyers into wait and watch mode, compounding the impact of soaring property prices over the past two years,” Anuj Puri, chairman, Anarock Group, told Hindustan Times. “Now, with domestic tensions easing and the Reserve Bank of India’s repo rate cut injecting fresh optimism, buyer sentiment is rebounding.”
Similar sentiments were shared by other real estate consultants.
“Geopolitical tensions always have an impact on Indian real estate, though the degree varies depending on the geography and Indian economic interests in those countries,” said a real estate consultant, requesting anonymity. “This time around, with America intervening in the Iran-Israel war, people feared that a medium to large-scale conflict may lead to economic slowdown or job cuts. Hence, home hunters decided to keep their purchase decisions on hold.”
In keeping with the dip in sales, new launches decelerated by 16% on a year-on-year basis, from approximately 117,165 units in the second quarter of 2024 to around 98,625 units in the second quarter of 2025. Realty hotspots MMR and NCR saw the maximum new supply, accounting for 48% of the total new supply across the seven cities. MMR witnessed a 36% yearly decline and a 8% quarterly decline in new supply.
One of the top developers in the MMR, who recently launched a project in the extended Navi Mumbai area, said, “When the Ukraine-Russia conflict broke out in February 2022, we thought it would last only a few weeks, but we have been proved wrong. But that conflict did not have as much impact on India’s realty industry as the one in the Middle East, especially with America’s involvement.”
Puri was optimistic about an uptick in sales in forthcoming quarters.
“Despite a 20% year-on-year dip in sales across the top seven cities, a 3% uptick this quarter signals renewed momentum,” he said. “With home loan rates softening and developers largely holding prices steady, the stage is set for a potential upswing in housing sales in the coming quarters.”
www.hindustantimes.com
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