Housing Sales Value Surges 14% Despite 9% Volume Drop in Q2 2025, Says Anarock Report

Real estate consultant Anarock has reported a significant divergence in India's housing market during the July–September 2025 quarter, with sales value registering a robust 14% year-on-year increase to ₹1.52 lakh crore across seven major cities, even as transaction volumes declined 9% during the same period. The report indicated that units sold dropped to 97,080 from 1,07,060 recorded in the corresponding quarter of the previous year, despite the overall value appreciation reaching ₹1.52 lakh crore compared to ₹1.33 lakh crore.

According to the consulting firm, the rise in sales value despite falling volumes has been attributed to a notable shift toward premium and luxury housing segments and price appreciation witnessed across multiple markets. The apparent disconnect between value and volume metrics suggests that buyer preferences are increasingly tilting toward higher-priced properties, while overall transaction activity has moderated.

City-Wise Performance Analysis

The report provided a detailed breakdown of performance across India's seven major real estate markets, revealing varied trends in different regions. Mumbai Metropolitan Region experienced the steepest decline with home sales falling 16% to approximately 30,260 units from around 36,195 units in the year-ago period. Pune witnessed a moderate decline of 13%, with units sold dropping to roughly 16,620 from 19,045.

Delhi-NCR recorded an 11% decrease in sales volumes to approximately 13,920 units from 15,570, reflecting softening demand in the National Capital Region market. Bengaluru showed resilience with volumes remaining nearly flat at 14,835 units compared to 15,025 in the previous year, representing just a 1% decline. Hyderabad saw an 11% decrease with sales dropping to around 11,305 units from 12,735.

On the positive side, Kolkata registered a 4% increase with sales rising to approximately 4,130 units from 3,980, while Chennai emerged as the standout performer with a significant 33% surge in demand, with units sold jumping to around 6,010 from 4,510 in the year-ago quarter.

Pricing Trends and Inventory Levels

The average price per square foot across the surveyed cities grew approximately 9% year-on-year, rising from ₹8,390 to ₹9,105, according to the Anarock data. This price appreciation has been a key factor in driving up the overall sales value despite the contraction in transaction volumes, the report suggested.

Unsold inventory across the seven cities witnessed only a marginal decline, dropping to 561,756 units from 562,148 units in the previous quarter. Market analysts quoted in the report attributed the subdued demand during the quarter to seasonal factors, including the monsoon period and the traditionally inauspicious "Shradh" period, which typically dampens home buying activity in India.

The consulting firm noted that premium and luxury housing transactions have helped drive the increased value share, with developer focus and pricing power in sought-after projects absorbing demand despite the softness in overall volumes.

Market Interpretation and Future Outlook

Industry experts analyzing the report have highlighted that the divergence between higher values and lower unit sales suggests that buyers remain active in the upper segments of the market, even as mid-segment demand has softened during the quarter. The price resilience being maintained despite sliding unit sales indicates that strategic developers with strong product offerings are better positioned to weather the current market conditions.

With unsold inventory remaining relatively stable, there appears to be no major overhang currently exerting downward pressure on prices across the surveyed markets. Market watchers have indicated that the lack of significant inventory buildup could support price stability in the near term.

Looking ahead, the report suggested that consumer sentiment, interest rate movements, and festival or seasonal demand—especially during the Diwali and Navratri periods—may play crucial roles in shaping a potential recovery in transaction volumes. The upcoming festive season is traditionally considered an auspicious time for property purchases in India and could provide a boost to sales activity.

The Anarock report underscores the evolving nature of India's residential real estate market, where value growth is being driven increasingly by premiumization rather than volume expansion, reflecting changing buyer preferences and market dynamics in the country's major urban centers.

Disclaimer: This news article is based on information from an Anarock report regarding housing sales during July–September 2025. The figures, statistics, and market interpretations presented are derived from the original report. Readers are advised to verify current market conditions and consult with qualified real estate professionals before making any property investment decisions. Market conditions may have changed since the publication of this report.