Housing Sales Surge 4-25% in Five Major Metro Cities While Maharashtra Markets Face Decline: PropEquity Report

Real estate consultant Anarock has disclosed in its latest quarterly report that housing sales value across seven major Indian cities witnessed a significant rise of 14%, reaching ₹1.52 lakh crore during the July-September 2025 quarter, up from ₹1.33 lakh crore recorded in the corresponding period of the previous year. However, the report also highlighted that sales volume experienced a decline of 9%, with the number of units sold dropping to 97,080 from 1,07,060 units.

Despite the decrease in unit sales, the increase in overall value has been attributed to a shift toward premium and luxury housing segments, along with price appreciation observed across various markets, according to the report.

City-Wise Performance Highlights Mixed Trends

The report provided a detailed city-wise breakdown of housing sales performance, revealing varied trends across the seven major Indian cities during the quarter.

Mumbai Metropolitan Region witnessed the most significant decline at 16%, while Chennai emerged as the strongest performer with a 33% surge in unit sales. Bengaluru remained relatively stable with only a 1% decline, indicating resilience in demand in the IT hub.

Price Appreciation and Inventory Levels

The report highlighted several key statistics that underscore the current state of the Indian real estate market:

• Average housing prices registered a growth of approximately 9% year-on-year, rising from ₹8,390 per square foot to ₹9,105 per square foot.
• Unsold inventory witnessed a marginal decline, dropping to 561,756 units from 562,148 units in the previous quarter.
• Analysts cited subdued demand during the monsoon season and the "Shradh" period as factors dampening sales activity.
• Premium and luxury housing transactions were identified as key drivers behind the increased value share despite lower volumes.
• Developer focus and pricing power in sought-after projects were noted to be absorbing demand despite the softness in overall volumes.

Market Analysis Points to Segment Shift

The divergence between higher transaction values and lower unit sales suggests that buyers remain active in the upper segments of the market, even as mid-segment demand experiences a slowdown, according to market analysts. This trend indicates that price resilience is holding up despite the slide in unit sales, which points to strategically positioned developers with strong product offerings being better equipped to navigate the current market conditions.

With unsold inventory levels remaining stable, there appears to be no major overhang currently exerting pressure on prices. This stability in inventory, coupled with the shift toward luxury housing segment, suggests a more balanced market scenario than what the volume decline alone might indicate.

Premium Segment Dominates Market Value

The strong performance of luxury housing in Mumbai and other major cities has been a significant contributor to the overall value growth. Despite volume pressures, premium housing segments in Pune and other markets continue to attract strong buyer interest, particularly from high-net-worth individuals seeking quality developments.

The Hyderabad real estate market has also witnessed continued demand in premium housing segments, even as overall volumes declined. This pattern reinforces the observation that affluent buyers are continuing their property acquisitions despite broader market headwinds.

Regional Market Dynamics

Among the cities analyzed, Pune's real estate market experienced a 13% decline in volume, reflecting challenges in mid-segment demand. Meanwhile, Delhi-NCR's investment landscape showed softening with an 11% drop in unit sales, signaling the need for developers to reassess their product mix and pricing strategies.

The modest growth witnessed in Kolkata and the robust performance of Chennai highlight the importance of localized factors in shaping market outcomes. Understanding these regional variations in property growth is crucial for investors looking to maximize returns in the current environment.

Future Outlook and Market Dynamics

Looking ahead, several factors are expected to shape the recovery in sales volumes across major Indian cities. Consumer sentiment, prevailing interest rates, and seasonal demand patterns—particularly during festive periods such as Diwali and Navratri—are anticipated to play crucial roles in determining market performance in the coming quarters.

Industry experts suggest that the impact of interest rates on housing demand will continue to be a significant determinant of market activity. Additionally, the sustained preference for premium and luxury housing segments may continue to support value growth even if volume recovery takes longer than anticipated.

The performance of individual cities, particularly the strong growth witnessed in Chennai and the relative stability in Bengaluru, provides insights into localized market dynamics that could influence national trends. Meanwhile, the challenges faced by major markets like Mumbai MMR and Pune underscore the need for developers to adapt their strategies to evolving buyer preferences and market conditions.

For investors considering where to buy property in India, understanding these market dynamics and regional variations will be essential for making informed decisions in the coming months.