Housing Sales Dip 20% in Top Cities, But Chennai Defies the Downtrend with 11% Growth

A report put out by Anarock states that India’s housing market underwent sharp damage in Q2 2025, with home sales registering a year-on-year fall of 20% across seven key cities. The total residential sales reduced from 1,20,335 units in the same quarter last year to 96,285 units. However, the best performance was by Chennai, which managed to clock an 11% year-on-year increase with 5,660 units sold as compared to 5,100 in the preceding quarter of 2024, alongside the best performance of a 40% increase over the previous quarter.

The country’s housing market nose-dived in the second quarter of 2025 with home sales dropping 20% on average across seven major cities because of sales that would fall heavily on total residential sales numbers from 1,20,335 units a year ago to 96,285 units now. That said, the best performance was achieved by Chennai, which was able to establish 11% year-on-year growth, with 5,660 units being sold as compared to 5,100 units within the preceding quarter of 2024, and reflecting, if viewed separately, a striking climb of 40% over the previous quarter.

In fact, the other prominent cities-Bangalore, Delhi-NCR, MMR, Pune, Hyderabad, and Kolkata-fell into serious slumps. MMR observed the highest decline at 25%, followed further by Pune (27%), Hyderabad (27%), and Kolkata (23%). Delhi-NCR reported a 14% drop, while Bengaluru saw an 8% dip.

New launches also slowed down, dropping 16% year-on-year to 98,625 units. Interestingly, NCR defied this trend with a 69% quarter-on-quarter jump and a 10% annual rise in new supply 82% of which was in the luxury segment priced above ₹1.5 crore.

Chennai’s resilience came amid a broader market slowdown triggered by global and domestic tensions. “The war-like climate earlier this year put buyers on the sidelines,” said Anuj Puri, Chairman of ANAROCK Group. “Now, easing tensions and a repo rate cut have begun restoring buyer confidence. A 3% quarter-on-quarter increase in sales suggests renewed momentum.”

The market saw a sharp tilt toward luxury homes, which made up 46% of new launches. Mid- and premium-segment units accounted for 21% each, while affordable housing lagged at 12%.

Prices remained firm with average residential values rising 11% year-on-year. NCR led with a 27% surge, followed by Bengaluru (12%) and Hyderabad (11%). However, quarterly growth in prices moderated to just 1%.

“Despite the overall decline, softening loan rates and stable prices could push sales up again,” Puri added. “If current trends hold, we may see a stronger recovery in the upcoming quarters.”