Homebuyers on a break? From Mumbai to Bengaluru, housing sales drop 20% YoY as prices peak

Housing sales have declined Year-on-Year (YoY) in Q2 2025 in all major cities except Chennai. According to Anarock Research, housing sales witnessed a 20% annual decline in Q2 2025 compared to Q2 2024.

In cities like Hyderabad and Pune, the decline in housing sales was steeper at 27% in Q2 2025.

Other cities like Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, and Kolkata witnessed housing sales of 25%, 14%, 8% and 23% respectively. However, Chennai was an exception with a 13% increase in housing sales YoY.

Homebuyers on a break?

Repo rate cuts by the RBI have made home loans affordable this year. However, it seems the homebuyers are still not convinced. More so because housing prices have peaked in most cities.

"Multiple factors have contributed to the current moderation in market momentum. Continuous price growth through FY2024 has pushed rates to near-peak levels in several cities, impacting affordability for many prospective buyers," the report said.

According to the report, the average property prices surged by 11% annually across the top 7 cities.

"The steepest hikes were seen in the National Capital Region (NCR) at 27%, followed by Bengaluru at 12%, pushing affordability beyond the reach of many buyers and ultimately dampening demand across segments," the report said.

Buyers are also cautious amid the ongoing geopolitical tensions.

As buyers take measured steps, developers may be forced to rethink their launch and pricing strategies.

"This phase of market consolidation is expected to encourage developers to reassess their launch strategies and pricing models, paving the way for more balanced supply-demand dynamics by the latter half of 2025. While rising prices have driven steady gains in sales realisations, volume growth has temporarily slowed as the market adjusts to these evolving conditions," the report said.

However, it is expected that the upcoming festival may boost housing sales as developers are likely to come up with enticing offers and schemes to spark buyer interest.