Home sales drop 14% in June quarter as affordability concerns persist: PropTiger.com report
Home sales in India’s 8 prime residential markets declined 14% annually in the April-June quarter as pricing concerns forced buyers to opt for a wait-and-watch mode, shows the latest report by digital real estate transaction & advisory platform PropTiger.com.
According to the report titled 'Real Insight Residential- April - June 2025' by PropTiger.com—part of REA India, which also owns Housing.com— sales fell across cities, barring Bengaluru, Chennai and Kolkata. The sharpest dip in sales during the quarter was seen in the MMR (-32%) and Pune (-27%). On a sequential basis, overall sales remained flat, with many markets showing growth. MMR (27%), Pune and Bengaluru (16% each) were the biggest contributors to the quarterly sales, together claiming a 59% share in overall numbers.
Mr. Sridhar Srinivasan, Head of Sales, PropTiger.com said, “The short-term dip in home sales and new launches is more of a recalibration than a sign of waning demand. Affordability pressures, particularly in the budget and mid-income segments, have led to some cautious buyer sentiment. However, underlying demand remains intact, as evidenced by strong sequential growth in several cities and the continued dominance of key markets like MMR, Pune, and Bengaluru."
"We’re also seeing clear intent from developers to stay invested—especially in premium offerings—amid a wave of strategic land acquisitions in the first half of 2025. This signals long-term confidence in India’s housing market, driven by sound macro fundamentals and consumer aspiration,” Mr. Srinivasan added.
Launches fall amid demand moderation
The report showed new supply falling both quarter-on-quarter and year-on-year as geopolitical factors adversely affected demand in Q2, a quarter during which the border conflict between India and neighbouring Pakistan escalated, resulting in each side launching a strike on the other.
A city-wise analysis shows varying trends, with MMR, Pune and Ahmedabad registering a fall in launches while new supply increased in other markets. In Kolkata, launches nearly tripled in the June quarter, primarily due a low base.
“Supported by sectoral performance and improving consumption trends, macroeconomic indicators point to India’s resilience in a turbulent global environment. So, this is not a demand-specific issue per se. The dip in both sales and launches have to do with the fact that housing affordability has worsened after a prolonged period of dramatic growth in average costs, severely affecting the affordable housing segment,” the company said in a statement.
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