Housing Sales Decline in MMR
The Market Implications of the 30% Decline in Housing Sales in MMR and Pune
July14, 2025, New Delhi — Pune and the Mumbai Metropolitan Region (MMR) had a sharp 30% decline in housing sales over the same period last year, going from 60,191 units to 41,901 units.
This significant drop, highlighted in a recent PropTiger report, stands in contrast to earlier quarters when MMR and Pune together contributed more than half of total housing sales across India’s major urban markets.
Key Insights and Market Trends
Across India’s eight primary housing markets, overall sales declined by 14%, down to 97,674 units from 113,768 units a year ago. MMR sales alone declined by 32% to 25,939 units, while Pune recorded a 27% fall, with sales at 15,962 units.
Experts attribute the downturn not to a lack of interest but to affordability challenges, particularly affecting budget and mid-income homebuyers. Sridhar Srinivasan, Head of Sales at PropTiger, emphasized that this is a recalibration phase, not a collapse in demand.
Demand vs. Affordability
This drop aligns with broader national trends noted in Q1 2025, when sales fell 19% year-on-year across key metros. High prices, coupled with limited new supply, have dampened momentum. Despite this, MMR and Pune remained dominant, contributing 51% of India’s new home sales in early 2025.
Average home prices in these regions remained relatively unchanged in Q1 2025, indicating a possible stabilization point after sharp hikes during the past year.
Key Factors Behind the Decline
Price Inflation: The sustained increase in property prices throughout FY2024–25 squeezed affordability, especially for the middle-income segment.
Cautious Developer Activity: Developers launched fewer new projects, partly in response to market dynamics, leading to a 10% drop in fresh supply.
Macroeconomic Headwinds: Rising costs, global uncertainty, and cautious investor sentiment—despite a recent repo rate cut by the RBI—continued to limit market activity.
Why It’s Not a Market Crash
Despite declining sales, several factors signal that buyer interest remains intact:
Trends in Registration: Maharashtra recorded consistent end-user demand as evidenced by the steady increase in property registrations, which topped 11.3 lakh in Q1 FY26, up 4.5% year over year.
Price Stability: Price movements have flattened in both MMR and Pune, suggesting a plateau that could benefit homebuyers in upcoming quarters.
User-Driven Demand: Analysts point out that while speculative investors may have pulled back, genuine buyer intent remains robust.
What to Expect Going Forward
Affordability Solutions: Developers may introduce buyer-friendly schemes such as flexible payment options, festive discounts, or subsidized home loan offers to boost affordability.
New Project Pipeline: As pricing stabilizes, developers may resume or initiate new launches, targeting demand in value-conscious micro-markets.
Policy Interventions: Additional rate reductions or lower Ready Reckoner (RR) values could ease the burden on buyers and possibly lead to a recovery in demand.
Seasonal Tailwinds: With the festive season and general elections approaching, developers may launch targeted promotional campaigns to revive interest.
Strategic Implications for Stakeholders
Homebuyers: This is a good time to negotiate, as the current environment favors buyers with stable prices and growing inventory.
Developers: Pricing correction and recalibrated project rollouts could help regain traction. Focus on location-based value offerings and affordability.
Investors: Close tracking of sales data and pricing trends in mid-income segments can help identify the right entry point for long-term value.
Last Thought
A market adjustment rather than a catastrophe is the reason for the 30% drop in property sales in MMR and Pune. The groundwork for a resurgence is still solid due to steady pricing, regular registrations, and robust underlying demand. As the market corrects and regains momentum, this time gives all stakeholders an opportunity to re-strategize, identify value, and get ready for the next stage of growth.