Chennai Only Bright Spot In Q2 Housing Sales, MMR Retains Top Spot Despite Fall

India’s housing market took a sharp hit in Q2 2025, with home sales falling 20% year-on-year across the top 7 cities due to rising prices and geopolitical tensions. However, in a surprise twist, Chennai emerged as the only city to buck the trend, recording 11% annual growth in sales and a staggering 40% surge quarter-on-quarter, according to the latest ANAROCK Research.

Chennai Outshines Peers with Strong Growth in Sales and New Launches
Chennai stood apart from its metro counterparts in Q2 2025. While other cities saw double-digit declines, Chennai recorded 5,660 housing units sold, up from 5,100 units in Q2 2024. Quarter-on-quarter, the city saw a dramatic 40% rise, while new launches jumped 65% YoY and 79% QoQ, fueled largely by mid and premium segment offerings.

According to the latest report by real estate consultancy ANAROCK, Q2 2025 recorded approximately 96,285 units sold, compared to over 1.20 lakh in the same period last year. However, quarter-on-quarter, there was a modest 3% uptick from 93,280 units sold in Q1 2025.

Geopolitical Unrest, Price Surge Dent Buyer Sentiment
“The second quarter of 2025 was a rollercoaster for the Indian housing market, rocked by major military actions at home and abroad,” said Anuj Puri, Chairman, ANAROCK Group. “The war-like climate pushed homebuyers into wait-and-watch mode, compounding the impact of soaring property prices over the past two years.”

Puri, however, expressed cautious optimism. “Now, with domestic tensions easing and the RBI’s repo rate cut injecting fresh optimism, buyer sentiment is rebounding. Despite a 20% year-on-year dip in sales across the top 7 cities, a 3% uptick this quarter signals renewed momentum.”

City-Level Performance: Chennai Defies the Trend
Among the top 7 cities, Chennai emerged as the only city to buck the declining trend, registering an 11% annual growth in housing sales—from 5,100 units in Q2 2024 to 5,660 units in Q2 2025. Quarter-on-quarter, the city saw a sharp 40% spike in sales.

Mumbai Metropolitan Region (MMR) retained the highest share in sales with approx. 31,275 units sold, though it marked a 25% annual decline. Pune and Bengaluru followed with approx. 15,410 and 15,120 units sold, respectively. Pune recorded the steepest annual decline at 27%.

City-wise Sales YoY (Q2 2025 vs Q2 2024):
MMR: -25%
Pune: -27%
Hyderabad: -27%
Bengaluru: -8%
Kolkata: -23%
NCR: -14%
Chennai: +11%

New Launches Contract 16% Annually
Developers appeared to be treading cautiously, pulling back on fresh supply. Q2 2025 saw approx. 98,625 new units launched, a 16% annual decline. Compared to Q1 2025, new launches dropped just 1%.

Despite the overall dip, NCR witnessed a 69% Q-o-Q surge in new launches and a 10% annual rise, with approx. 18,760 new units added. MMR led in volume with approx. 28,165 units, though this marked a 36% yearly drop. Chennai once again stood out with a 65% Y-o-Y rise and 79% quarterly growth in new launches.

Luxury & Premium Segments Dominate
A notable trend in Q2 was the dominance of luxury and ultra-luxury housing (>Rs 1.5 Cr), which accounted for 46% of the new supply. Mid-range (Rs 40 lakh – 80 lakh) and premium (Rs 80 lakh – 1.5 Cr) each contributed 21%, while affordable housing accounted for just 12%.

Prices Continue to Climb, Led by NCR
Average residential prices across the top 7 cities saw an 11% annual rise, though the quarterly increase was modest at 1%.

“NCR led the pack in Q2 2025 with a striking 27% year-on-year surge and a 4% quarterly rise in residential prices,” said Puri. “Bengaluru followed with a 12% annual jump. If prices remain in check, expect housing sales across major cities to accelerate in the coming quarters.”

Unsold Inventory Stable, Pune Sees Sharp Decline
Unsold inventory across the top 7 cities stood at approx. 5.62 lakh units at the end of Q2 2025, a slight increase from Q1 but a 3% annual decline. Pune led in inventory reduction, with a 15% Y-o-Y drop—from approx. 94,770 units in Q2 2024 to approx. 80,240 units in Q2 2025.

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Hope on the Horizon
While the overall numbers in Q2 2025 indicate a market under pressure, the modest quarterly rise in sales and easing monetary policy offer reasons for cautious optimism. With developers focusing on premium segments and macroeconomic tensions stabilising, the housing market may be poised for a turnaround in the second half of the year.