India Residential Real Estate Q2 2025: Market Calibrates Amid Price Pressures, MMR Leads with Highest Inventory

India's residential real estate market in Q2 2025 presents a dynamic landscape marked by calibration, evolving strategy, and regional contrasts. According to a Q2FY25 Indian Residential Market report by ANAROCK, while overall sales volumes dipped 20 percent year-on-year to 96,300 units, total sales value edged up by 1 percent to Rs. 1.47 lakh crore, signaling a flight to quality and a tilt toward premium housing.

This quarter, new launches fell 16 percent year-on-year to around 98,600 units, with developers shifting priorities from rapid expansion to careful project completion amid global and domestic uncertainties. Still, both sales and launches remain well above pre-COVID levels, a testament to sustained demand and the sector's post-pandemic resilience.

"June 2025 saw Mumbai notch up its second-highest property registrations for the month in six years, with 11,211 properties changing hands and revenue collections hitting Rs. 1,004 crore. While registrations dipped slightly, about 4 percent lower than June 2024’s 11,673 deals, this year’s revenue held firm, matching almost last year’s figure. June 2025’s revenue was just 1 percent lower than last year, highlighting the market’s resilience despite a marginal drop in transactions. Mumbai’s real estate continues to deliver strong numbers, even as the pace has cooled a bit," says Anuj Puri, Chairman, ANAROCK Group.

Also Read: South India Leads Real Estate Recovery in Q2 2025

Mumbai Metropolitan Region (MMR)

MMR maintained its market leadership through the quarter, contributing 28,150 new launches and 31,300 units sold, representing about 29 percent and 33 percent of pan-India activity, respectively. However, this came with a notable correction. Compared to Q2 2024, new launches and sales shrank by 36 percent and 25 percent, respectively, reflecting both the region's historical highs and the impact of rising prices on affordability. MMR posted the highest available inventory among Indian metros at 177,000 units and the steepest average price: Rs. 17,100/sf, with an annual price growth of 9 percent. As a result, inventory overhang rose to 16 months, hinting at a balanced but closely watched market dynamic.

Rajat Khandelwal, Group CEO, Tribeca Developers, commented "Mumbai remains India’s most dynamic real estate market, driven by its status as the financial capital and supported by transformative infrastructure like the Coastal Road and Trans Harbour Link. At Tribeca, we’ve always believed in Mumbai’s potential. After the success of The Edge, we launched Trilive, a branded, pre-leased serviced apartment project in Andheri with Housr, offering a new asset class personalized to young professionals seeking flexibility and lifestyle. The surge in launches reflects not oversupply, but the city’s deep and growing demand. For developers who understand Mumbai’s rhythm, the opportunity is unmatched."

National Capital Region (NCR)

The NCR emerged as the second-largest driver of new launches at 18,800 units—a robust 69 percent increase over the previous quarter, and 11 percent growth year-on-year. Sales climbed 14 percent over Q1 2025 to 14,250 units, but the year-over-year comparison reveals a 14% dip as affordability is squeezed by a sharp 27 percent annual price surge to Rs. 8,650/sf—NCR’s steepest in years. Available inventory sits at 89,000 units, and inventory overhang rose to 19 months, up by two months compared to the previous quarter. This reflects developer caution and possible oversupply in premium and ultra-luxury segments, despite ongoing demand from affluent buyers.

Also Read: Legacy & Growth: Family-owned Real Estate in India

Pune

Pune’s real estate market experienced both resilience and recalibration. New launches reached 14,200 units (14 percent of the national tally), while sales hit 15,400 units. Compared to Q2 2024, both metrics fell—launches by 25 percent and sales by 27 percent. However, Pune registered the largest year-on-year drop in available inventory at 15 percent, now at 80,250 units, suggesting healthy absorption. Average prices inched up 6 percent year-on-year to Rs. 7,900/sf, and inventory overhang held steady and lowest among the top cities at 14 months, reflecting robust fundamentals and relatively quick project movement even as the pace of growth normalizes.