Housing sales: The Reserve Bank of India (RBI) has cut 100 basis points (BPS) in the repo rate i.e. policy interest rates so far in 2025. 25‑25 BPS in February and April and 50 BPS were cut in June. This has reduced the repo rate from 6% to 5.5%. After this deduction, most banks have cheaper their debt rate. Especially, home loan interest rate. However, its advantage is not visible in the sale of homes.
The second quarter (Q2) of the calendar year 2025 (Q2) has recorded a sharp decline in housing sales in the country’s major real estate markets. According to the Anarock Research report, this time the total housing sales have declined by 20% compared to Q2 2024. Chennai was the only city where sales have increased during this period.
Hyderabad and Pune the biggest decline
According to Encarock report, Housing demand was seen to have the biggest decline in Hyderabad and Pune. The sales here decreased by 27% on an annual basis. This decline in Mumbai Metropolitan Region (MMR) was 25%. At the same time, Delhi-NCR and Kolkata recorded a decline of 14% and 23% respectively. Sales decreased by 8% in Bengaluru.
Source: Anarock research
Why the housing market laughed?
According to the report, the financial year 2024-25 saw a steady increase in the prices of houses. This has affected people’s shopping ability. High cuts in interest rates are also not able to increase buyers. The average prices in the top 7 cities have risen by 11%. At the same time, NCR recorded the highest growth of 27% and Bangalore increased by 12%. This led to many potential buyers under the pressure of prices.
This year, the interest rates of home loans have decreased due to a major cut in repo rate, but there was no clear improvement in the market. The report stated that high prices, global uncertainties and the vigilance of buyers have affected demand.
Challenge for real estate developers
Anarock Research has predicted that the existing atmosphere may force developers to launch and reconsider pricing strategy. Companies may have to bring new offers and schemes before the festive season, so that they can increase the demand again.
The report also states that “there is currently a temporary stagnation in the market, but the situation may improve in the second half of the year.”