India’s housing market entered a phase of recalibration in Q2 2025 as developers tempered new launches and sales volumes moderated after record highs in 2024. According to ANAROCK’s latest report, new launches across the top 7 cities declined 16% year-on-year to approximately 98,600 units, while sales volumes fell 20% annually to around 96,300 units. However, the total sales value grew 1%, reflecting strong demand for higher-value homes.
“The current slowdown is less about distress and more a strategic adjustment toward sustainable, demand-aligned growth,”
Anuj Puri, Chairman, ANAROCK Group
Pan-India Housing Snapshot – Q2 2025
| Metric | Q2 2024 | Q1 2025 | Q2 2025 | Y-o-Y Change |
|---|---|---|---|---|
| New Launches | 117,100 units | 100,000 units | 98,600 units | -16% |
| Sales Volume | 120,400 units | 93,500 units | 96,300 units | -20% |
| Average Price (Pan-India) | ₹8,070/sq. ft. | — | ₹8,990/sq. ft. | +11% |
| Available Inventory | 577,000 units | 560,000 units | 562,150 units | -3% |
City-Level Highlights
| City | New Launches | Sales Units | Avg. Price (₹/sq. ft.) | Y-o-Y Price Change |
|---|---|---|---|---|
| NCR | 18,800 | 14,250 | 8,650 | +27% |
| MMR | 28,150 | 31,300 | 17,100 | +9% |
| Bengaluru | 15,350 | 15,100 | 8,720 | +12% |
| Pune | 14,200 | 15,400 | 7,875 | +6% |
| Hyderabad | 11,100 | 11,050 | 7,645 | +11% |
| Chennai | 8,500 | 5,650 | 6,950 | +7% |
| Kolkata | 2,500 | 3,550 | 6,000 | +9% |
Shift in Budget Segmentation of Supply
| Segment | Share of New Launches (%) |
|---|---|
| Affordable (<₹40L) | 12% |
| Mid-End (₹40–80L) | 21% |
| High-End (₹80L–1.5Cr) | 21% |
| Luxury (₹1.5–2.5Cr) | 27% |
| Ultra-Luxury (>₹2.5Cr) | 19% |
Key Market Trends
- Luxury Leads the Market:
The luxury segment accounted for the largest share of new launches at 27%, indicating sustained appetite for premium housing. - Chennai Outperforms:
Chennai saw 63% annual growth in new launches and 13% sales growth, bucking the broader slowdown. - Prices Continue to Climb:
NCR led price appreciation with a 27% year-on-year rise, followed by Bengaluru at 12%. - Developers Take a Cautious Stance:
Focus shifted to completing projects and managing inventory amid global economic uncertainties.
“While sales volumes have moderated, average prices are still rising, underscoring the resilience of end-user demand in premium segments,”
Dr. Prashant Thakur, Regional Director & Head of Research, ANAROCK
Inventory Overhang
| City | Inventory Overhang (Months) |
|---|---|
| Hyderabad | 26 |
| Chennai | 21 |
| Kolkata | 21 |
| NCR | 19 |
| MMR | 16 |
| Pune | 14 |
| Bengaluru | 12 |
Looking Ahead
ANAROCK expects recalibration to continue through late 2025 as developers adopt a more selective, measured approach to launches. Falling home loan rates, rising incomes, and regulatory reforms are anticipated to gradually revive demand.
“With the festive season approaching and RBI’s rate cuts improving affordability, the market is poised for a more balanced growth trajectory,”
Abhai Mani Chaturvedi, Sr. Vice President – Research & Advisory, ANAROCK
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