Residential Real Estate Q2 2025: Market Calibrates Amid Price Pressure, MMR Leads With Highest Inventory

Mumbai, July 31, 2025: The 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 per cent YoY to 96,300 units, total sales value edged up by 1 per cent to INR 1.47 lakh crore, signalling a flight to quality and a tilt toward premium housing.

New launches fell 16 per cent YoY 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 INR 1,004 crore. While registrations dipped slightly, about four per cent lower than June 2024’s 11,673 deals, this year’s revenue held firm, matching almost last year’s figure,” said Anuj Puri, Chairman, ANAROCK Group.

“June 2025’s revenue was just one per cent 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.”

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 per cent and 33 per cent of pan-India activity, respectively.

However, this came with a notable correction. Compared to Q2 2024, new launches and sales shrank by 36 per cent and 25 per cent, respectively, reflecting both the region’s historical highs and the impact of rising prices on affordability.

MMR posted the highest available inventory among metros at 177,000 units and the steepest average price: INR 17,100/sf with an annual price growth of nine per cent. As a result, inventory overhang rose to 16 months, hinting at a balanced but closely watched market dynamic.

“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,” said Rajat Khandelwal, Group CEO, Tribeca Developers. 

“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 personalised 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 per cent increase over the previous quarter, and 11 per cent growth year-on-year. Sales climbed 14 per cent over Q1 2025 to 14,250 units, but the year-over-year comparison reveals a 14 per cent dip as affordability is squeezed by a sharp 27 per cent annual price surge to INR 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.

Pune

Pune’s real estate market experienced both resilience and recalibration. New launches reached 14,200 units (14 per cent of the national tally) while sales hit 15,400 units. Compared to Q2 2024, both metrics fell—launches by 25 per cent and sales by 27per cent.

However, Pune registered the largest year-on-year drop in available inventory at 15 per cent, now at 80,250 units, suggesting healthy absorption. Average prices inched up six per cent YoY to INR 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 normalises.

 Key Performance Metrics by City (Q2 2025)

This evolving real estate narrative illustrates a sector recalibrating for long-term stability with each of the metro regions responding uniquely to shifting buyer sentiment, affordability pressures, and strategic supply-side decisions.