New Delhi (Economy India): India’s residential real estate market witnessed a slowdown in the April–June quarter of FY2025-26, with housing sales across the top eight cities declining 14% year-on-year to 97,674 units, according to a report released by PropTiger.com on Monday.
In the corresponding period last year (April–June 2024), these cities had registered 1,13,768 unit sales. The sharp fall, analysts suggest, is largely due to rising property prices that have begun to impact affordability and buyer sentiment.
Key Highlights of the Report:
- Total units sold (April–June 2025): 97,674
- Total units sold (April–June 2024): 1,13,768
- YoY Decline: 14%
- Most affected cities: Mumbai Metropolitan Region (MMR) and Pune
- Combined sales in MMR & Pune: 41,901 units (down 30% YoY)
- Sales in MMR & Pune (Q1 FY25): 60,191 units
Mumbai, Pune Lead the Decline
The combined share of housing sales in Mumbai Metropolitan Region (MMR) and Pune—two of India’s most significant real estate markets—fell drastically, registering a 30% year-on-year drop in Q1 FY26. Sales in these two markets dropped to 41,901 units, compared to 60,191 units in the same quarter last year.
“The correction in sales volumes across MMR and Pune reflects a growing resistance from homebuyers against high ticket sizes and steadily increasing home loan EMIs,” said Sudhir Deshpande, Senior Research Analyst at Realty Insights India.
Price Surge Impacting Demand
The real estate boom witnessed in the past two years, fueled by post-pandemic recovery and urban migration, has now begun to show signs of tapering off. With property prices reaching record highs in key urban centers and mortgage rates still elevated, a section of potential homebuyers is choosing to delay purchases.
“We’re observing a demand saturation point, especially in price-sensitive mid-income segments. If developers continue to increase prices without offering flexible payment schemes, the slowdown could deepen,” noted Ankita Sinha, Head of Residential Strategy, PropTiger.
Demand Resilient in Select Cities
While MMR and Pune were hit hard, other cities such as Bengaluru, Hyderabad, Chennai, and Delhi NCR reported more modest declines, and in some micro-markets, sales remained flat or marginally improved due to sustained interest from salaried professionals and NRIs.
Outlook: Hope on Festive Season Recovery
Despite the current dip, industry experts remain cautiously optimistic. Developers are expected to launch new inventory with festive offers in the coming months, particularly around Ganesh Chaturthi and Diwali, which could revive market momentum.
Moreover, with the RBI holding interest rates steady and income levels gradually rising, affordability may improve if prices stabilize.
“The fundamentals remain strong—urbanization, rising nuclear families, and housing aspirations are intact. The current slowdown is a pricing-led pause, not a demand collapse,” said Devang Pandya, Managing Director, RealtyWatch Advisors.
The 14% drop in housing sales during April–June 2025 reflects the price sensitivity of Indian homebuyers in a rapidly appreciating market. As developers and policymakers eye the festive season for recovery, the coming quarter will be critical in setting the tone for the rest of FY26.
(Economy India)
