‘Homebuyers in wait-and-watch mode’: Fewer Indians now buying homes as prices soar, says report

The sale of houses in the country dipped 20% year-on-year in the April-June quarter, mainly due to an 11% jump in prices and geopolitical tensions, Anarock said on Thursday.

According to data released by the real estate consultancy, the housing sales across seven major cities dipped to 96,285 units during the quarter from 1,20,335 units in the same quarter last year.

Earlier this week, another realty platform, PropEquity, estimated a 19% fall in sales this quarter.

Anarock's data showed that the sales declined in six out of seven top cities - Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, Hyderabad, Pune and Kolkata. The highest dip of 27% was witnessed in Pune and Hyderabad.

The demand increased only in Chennai.

“The second quarter of 2025 was a rollercoaster for the Indian housing market, rocked by major military actions at home and abroad,” said Anarock Chairman Anuj Puri.

He added, “The war-like climate pushed homebuyers into wait-and-watch mode, compounding the impact of soaring property prices over the past two years.”

Developers also in cautious stance

Not just buyers but the developers also seem to have taken a cautious stance with the new launches falling 16% this quarter as compared to last year.

The sharpest dip in launches was witnessed in Mumbai at 36%. The launches grew in Delhi NCR, Chennai and Kolkata, with the highest at 65% in Tamil Nadu's capital.

Puri, however, added that the RBI's larger-than-expected repo rate cut of 50 basis points, along with easing domestic tensions, the buyer sentiment are rebounding.

“With home loan rates softening and developers largely holding prices steady, the stage is set for a potential upswing in housing sales in the coming quarters,” he said.

On Thursday, the central bank suggested that all banks should bring down their lending rates for the speedy transmission of the policy rate. An article published in the RBI's June Bulletin stressed that the financial conditions remained conducive to facilitating an efficient transmission of rate cuts.