India’s residential real estate market saw an 11% year-on-year increase in average property prices across the top 7 cities in Q2 2025, despite a 20% drop in housing sales compared to Q2 2024. This price surge was led by the luxury and ultra-luxury segments, which made up nearly 46% of new launches, while affordable housing accounted for just 12%.
City-wise Price Trends
NCR: +27% YoY – highest jump, driven by luxury launches
Bengaluru: +12% YoY – strong premium demand
Hyderabad: +11% YoY – ultra-luxury dominates new supply
MMR & Pune: Prices rose, but sales dipped sharply
Chennai: Only city with YoY sales growth (+11%) and 40% QoQ jump
Market Dynamics
Rising prices and geopolitical tensions (e.g., Operation Sindoor, Iran-Israel conflict) led to cautious buyer sentiment
Developers focused on premium inventory, reducing affordable supply
RBI’s repo rate cut and easing domestic tensions sparked a 3% QoQ sales recovery, hinting at renewed momentum
Unsold Inventory & Outlook
Unsold stock stood at 5.62 lakh units, down 3% YoY
Pune led cleanup with a 15% drop in unsold inventory
Analysts expect H2 2025 to see improved demand if prices stabilize and financing remains favorable
