Real estate
In the big cities of the country, the prices of residential property are rising rapidly, but the number of house buyers is decreasing. In the April-June 2025 quarter, RBI had cut interest rates by 100 basis points, but it did not affect the sale of houses.
Anarock’s latest Q2 2025 PAN India Residential Market report, the sales of houses in the top 7 cities of the country declined by 20% to 96,300 units on an annual basis, while the average price of the property increased by 11%. These figures show that now there has been a big difference between the price and the sale, which is pointing to a big change in the country’s real estate market.
Why the sale of houses reduced?
There was a slight increase of 3% in sales in Q2 2025 as compared to the previous quarter, but the decline on an annual basis was much higher. Sales declined by 25-27% in cities like Mumbai and Pune. Sales in Hyderabad and NCR also declined by 27% and 14% respectively. At the same time, Chennai surprised everyone and recorded a 13% gains on an annual basis and 40% more sales than the previous quarter.
It was difficult to buy a house for the middle class
The biggest shock is that where sales have decreased, prices have increased rapidly. The NCR recorded a 27% increase in prices, followed by a 12% jump in Bengaluru. Prices in Hyderabad, Chennai and Pune have also increased by 611%. The average price of property across the country has increased from Rs 8,070 per sqft to Rs 8,990. That is, an annual 11% gain.
Increased cost, high rate of land and demand for premium houses are the major reasons. Because of this, it has become very difficult to buy a house for middle class. People are either avoiding their purchase or going towards small houses.
Premium and luxury segment boom
This difference between sales and prices is showing a big shift in the country’s real estate. The demand for premium and luxury houses is increasing, but affordability has become a big challenge for the middle class. The builders are now targeting high-end customers instead of middle class.
Q2 was 27% of the new launch in Luxury Housing (Rs 1.52.5 crore) in 2025, followed by high-end (80 lakh 1.5 crore) and 21% of the mid-end (4080 lakh) segment. Ultra-Laxari (more than 2.5 crore) was 19%.
On the contrary, there was no significant increase in affordable housing (less than 40 lakhs) and it was only 12% of the new launch. It is clear that the interest of the builders is no longer in cheap houses with less profitable.
Inventory decreased, some cities also increased
Despite the decline of low sales and new launching 16%, the inventory of houses available in top 7 cities fell 3% to 5.62 lakh units on an annual basis. Inventory declined by 15% in Pune, while MMR declined by 9%. At the same time, the inventory in Bengaluru increased by 30%, which is showing temporary imbalance between demand and supply.