India Housing Sales Dip 6.1% in Q2: Tech Layoffs Impact Demand
By Business Desk
India’s housing sales dropped 6.1% YoY in Q2 across top cities. Tech layoffs and economic uncertainty are affecting demand, especially for homes under ₹1 crore.
Housing sales across India’s top eight cities saw a 6.1% year-on-year decline in the second quarter, according to the latest Real Insight Residential report from PropTiger. This downturn reflects increased buyer caution and pre-monsoon seasonality, alongside significant layoffs in the technology sector.
The impact was particularly acute for homes priced below ₹1 crore, where demand softened considerably. Despite this slowdown in sales, new housing launches increased, signaling a continued imbalance between supply and absorption.
Key Q2 Housing Market Figures
- Total homes sold: 91,729 units
- Year-on-year sales decrease: 6.1%
- Quarter-on-quarter sales decrease: 4.4%
- New housing launches: 89,161 units
- Year-on-year new launch increase: 6%
Technology-centric markets experienced the most notable sequential slowdowns. This trend was partly influenced by broader geopolitical events such as the US-Iran conflict, adding to existing market pressures.
Regional Sales Performance
- Pune recorded the steepest annual sales decline of 20.8% (12,642 units).
- Ahmedabad followed with a 20.2% drop (7,541 units).
- Bengaluru saw a 9.2% decrease (14,186 units).
- Delhi-NCR and MMR both experienced a 7% annual decline in sales.
- In contrast, Hyderabad sales rose 14.6% (13,196 units) year-on-year.
- Chennai achieved a significant 36% sales increase (7,183 units) annually.
- Kolkata posted a strong 22% sequential increase, marking the best quarter-on-quarter recovery nationally.
Despite reduced sales volumes, property prices continued their upward trajectory. The sales-weighted average price across the eight cities increased by 1% sequentially, reaching ₹10,153 per square foot.
Bengaluru, despite its weaker sales performance, witnessed the highest annual price appreciation at 26%, with prices reaching ₹9,931 per square foot. MMR remained the largest market by both volume and value, selling 24,112 homes at an average of ₹15,422 per square foot, a 20.4% increase year-on-year.
Ahmedabad remained the most affordable market at ₹5,295 per square foot, while also recording the strongest sequential price increase of 7%. Prakash Tejwani, CEO of PropTiger, noted that prices have remained resilient even as buyers exercise more selectivity.
Tejwani highlighted genuine demand-led recoveries in Kolkata and Chennai, and continued pricing power in Bengaluru and Pune despite caution in the tech sector. He added that disciplined supply positions developers favorably for the upcoming festive quarter, emphasizing affordability as a critical factor to monitor.
Reductions in GST on construction materials like cement, marble, and granite provided an estimated 2–3% buffer in construction costs. However, this benefit has been absorbed into project economics rather than translating into lower residential prices for buyers.
Outlook for the Festive Quarter
PropTiger anticipates the festive quarter to serve as an important indicator of underlying housing demand. This period could see a boost from festive-season buying, potentially fostering further market recovery.