Home Sales Drop 14% in Q2 Amid Affordability Woes: PropTiger Report

Residential properties in India have witnessed a 14% reduction in sales annually during the April to June 2025 quarter in the PropTiger.com report, titled the Real Insight Residential – April-June 2025, which revealed that soaring prices deterred potential buyers from attempting to step into the market.

However, the effect on this slowing was mainly due to the present affordability issues in the budget and mid-income segments, which witnessed the highest year- on-year sales declines in major metros like Mumbai Metropolitan Region (MMR) and Pune at 32% and 27%, respectively. Bengaluru, Chennai, and Kolkata showed contrary trajectories with positive growth.

On the contrary, total sales remained almost the same compared to Q1 with an annual decline that had pushed up overall sales for the quarter, aside from the notable contributions of MMR (27%), Pune (16%), and Bengaluru (16%), which accounted for almost 60% of transactions.

Sridhar Srinivasan, Head of Sales, PropTiger.com, described the dip as a “recalibration” rather than as an indicator of erosion in demand. According to him, “Challenges with affordability have resulted in some caution, but the underlying demand is good, as indicated by sequential improvements and sustained activity in leading markets.”.

The report also highlighted a decline in new housing supply in the said quarter, which fell on both a year-on-year and quarter-on-quarter basis, partly due to geopolitical uncertainties. Specifically, border tensions between India and Pakistan led to cross-border strikes during Q2, to volatility in the market and developer hesitancy.

City-level trends in new supply diverged considerably. While MMR, Pune, and Ahmedabad shrank in new launches, cities such as Kolkata experienced escalation-nearly tripling launches due to a previously low base.

According to PropTiger, the overall macroeconomics that underpin India remain strong despite the global crisis: “This dip has nothing to do with lack of demand; realism and affordability have been impacted by the sharp spikes in housing prices. Particularly, the affordable housing segment is under stress,” commented the organization.

Interestingly, developers have maintained long-term confidence in the sector, especially in the premium category, reinforced by strategic land acquisitions during H1 2025; a signal that housing aspirations remain strong despite the short-term challenges.