Housing Sales Slide 6% in June Quarter Amid IT Uncertainty and Global Conflicts

Housing Sales Slide 6% in June Quarter Amid IT Uncertainty and Global Conflicts​

Housing sales across India's seven major metropolitan areas experienced a notable downturn in the June quarter, reporting a 6 percent decline year-on-year. The slowdown, according to a report released by Anarock, is attributed primarily to global tensions stemming from the West Asia conflict and widespread uncertainty within the IT/ITeS sector, which have collectively dampened buyer sentiment.

Residential sales decreased to approximately 90,715 units, down from 96,285 units recorded a year earlier. Sequentially, demand also saw a contraction, falling by 11 percent. This moderation reflects a maturing market as supply levels begin to catch up following several years of aggressive growth in the property segment.

Geopolitical Headwinds and Demand Sentiment​

Anarock Group chairman Anuj Puri noted that both the disruptions caused by the Middle East war and the prevailing uncertainties related to AI within the IT sector have discouraged potential buyers. This dual pressure from geopolitical instability and technological uncertainty is pushing more prospective purchasers toward indecision.

As the market progresses, it appears increasingly balanced; supply is now beginning to align with demand after a prolonged period of heightened buyer enthusiasm. While sales are moderating nationally, the underlying resilience of the market remains strong in key urban centers.

Regional Market Dynamics and Performance​

The Mumbai Metropolitan Region (MMR) and Bengaluru continued to stand as the anchors of India's residential housing markets. These two cities combined accounted for nearly 48 percent of total residential sales and represented 53 percent of all new project launches during the quarter.

Specific city performance varied widely across the top seven areas. MMR recorded sales of roughly 28,710 units, marking an 8 percent decline year-on-year. Conversely, Bengaluru managed a marginal increase of 1 percent, with 15,285 homes sold. Hyderabad and Kolkata were among the few cities to report growth, logging increases of 2 percent and 10 percent, respectively. Pune witnessed the steepest fall in sales within this group, dropping by 15 percent.

New Housing Launches Show Recovery and Shifts Focus​

Despite the softening in immediate demand, new housing launches recorded a rebound, increasing by 7 percent year-on-year to nearly 1.06 lakh units. However, this figure still represents a decline of 16 percent when compared against the preceding March quarter.

The uptick in annual supply was largely fueled by large and established developers who secured parcels for projects that are set to launch in 2025. On the regional front, Hyderabad led the charge with a 53 percent jump in launches, followed closely by Bengaluru at 41 percent, and MMR registering a 23 percent increase. Conversely, NCR experienced a notable 40 percent reduction in new supply listings.

Premiumization Trends Define Housing Segment Mix​

The report highlighted a pronounced trend toward premium housing within the market’s supply side. Homes situated in the Rs 80 lakh to Rs 1.5 crore bracket commanded the largest share of new launches at 27 percent. The Rs 1.5 crore to Rs 2.5 crore segment followed closely behind, accounting for 25 percent of that supply.

Luxury housing units, priced above Rs 2.5 crore, constituted 22 percent of the total new supply. In contrast, affordable housing, those homes under Rs 40 lakh, saw a shrinkage in market focus, shrinking to just 6 percent of the available inventory.

Prices Remain Firm as Inventory Rises​

Residential prices exhibited resilience despite the slower sales volume across the metropolitan regions. The average price across the top seven cities increased by 7 percent annually, although quarterly appreciation remained modest at around one percent. NCR recorded the highest annual price jump at 13 percent, closely followed by Bengaluru at 8 percent.

Available housing inventory levels also saw a robust rise, increasing by 10 percent year-on-year to exceed 6.16 lakh units as of the end of June. Developers are actively replenishing stock, with Bengaluru showing the sharpest increase in inventory at 34 percent. These data points underscore that India's residential market is transitioning into a more mature, balanced phase, allowing developers to maintain long-term confidence despite current economic and geopolitical uncertainties.