Housing Sales and Supply Dip in Mumbai, Thane, Navi Mumbai, and Pune in Q2 2025

The second quarter of 2025 has been a challenging period for Maharashtra’s real estate sector. Major cities like Mumbai, Thane, Navi Mumbai, and Pune have experienced significant declines in housing sales and new supply, highlighting a market undergoing correction. Data from PropEquity illustrates the depth of these changes, shedding light on the state of real estate in one of India’s most dynamic regions.

This decline in sales and supply is not isolated to Maharashtra. While other cities like Bengaluru and Hyderabad are witnessing mixed trends, Delhi NCR and Chennai have defied the odds by recording positive growth. Let’s delve into the specifics of Maharashtra’s housing market and explore the reasons behind the slump.

Housing Market Performance in Maharashtra: A Detailed Analysis

Mumbai: Real Estate Struggles Continue

Mumbai, India’s financial capital, witnessed a steep decline in both housing sales and new launches in Q2 2025.

• Housing Sales: Sales fell by 34% year-on-year (YoY), with just 8,006 units sold compared to 12,114 units in Q2 2024.
• New Supply: The city saw a staggering 61% drop in new launches, with only 4,949 units introduced compared to 12,610 units during the same period last year.

Thane and Navi Mumbai: Satellite Cities Hit Hard

• Thane: Known for its burgeoning real estate, Thane saw a 34% drop in housing sales. New supply plummeted by 58%, reflecting declining developer activity and buyer interest.
• Navi Mumbai: Sales in Navi Mumbai declined by 17%, while new launches fell sharply by 56%, indicating a significant slowdown in this otherwise vibrant market.

Pune: A Struggling Market

Pune, often considered a stronghold for residential real estate due to its IT-driven economy, was the third most affected city in Maharashtra.

• Sales: Housing sales decreased by 27% YoY.
• New Supply: New project launches declined by 40%, signaling reduced confidence among developers.

Also Read: Maharashtra’s New Housing Society Draft Rules: 5 Key Highlights You Must Know

Comparing Maharashtra with Other Key Markets

Hyderabad and Bengaluru: Mixed Trends

• Hyderabad: Housing sales dropped 20%, but new supply rose by 19%, showcasing the city’s continued development despite a challenging environment.
• Bengaluru: The city reported a modest decline in housing sales (6%) and a 13% decrease in new supply, benefiting from a relatively balanced market.

Eastern India: Kolkata Slows Down

Kolkata’s real estate market saw an 8% decline in housing sales and a substantial 35% drop in new supply, further emphasizing the nationwide trend of declining real estate activity.

Delhi NCR and Chennai: A Silver Lining

• Delhi NCR: Sales increased by 16% YoY, reaching 11,703 units, while new supply rose by 37%. Emerging markets like Ghaziabad and Greater Noida drove this growth.
• Chennai: The city recorded a 9% increase in sales and a 6% growth in new supply, underlining its resilience in a turbulent market.

Factors Contributing to the Decline in Maharashtra Housing Sales in Q2 2025

1. Market Correction Post-Highs:
   The unprecedented growth witnessed in 2023 and 2024 has naturally led to a market correction. Property prices have surged by 50–200% over the past few years, deterring potential buyers and investors.
2. Geopolitical Tensions:
   Ongoing global geopolitical uncertainties have dampened buyer sentiment, causing delays in purchase decisions.
3. Buyer Hesitation:
   Prospective homebuyers are adopting a wait-and-watch approach, expecting better deals during the upcoming festive season when developers typically offer discounts and incentives.
4. Focus on Existing Inventory:
   Developers prioritize clearing unsold inventory over launching new projects, resulting in a sharp drop in supply.
5. Increased Affordability Concerns:
   Rising construction costs and higher property prices have made homeownership less affordable for many, further impacting sales.

Expert Insights on the Current Market Dynamics

Samir Jasuja, CEO of PropEquity

Jasuja notes that the current dip is a result of natural market corrections following years of exceptional growth. He emphasizes that activity is likely to rebound during the festive season when market conditions are more favorable for buyers.

Bhavesh Shah, Joint Managing Director of Today Group

Shah highlights the temporary nature of the slowdown and believes that Maharashtra’s real estate market remains robust in the long term. According to him, strategic locations like Navi Mumbai continue to perform steadily due to strong demand and well-established credibility among developers.

Looking Forward: What Lies Ahead for Maharashtra Real Estate?

Despite the current challenges, experts are optimistic about the future of Maharashtra’s housing market. Key factors driving this optimism include:

• Urbanization: Continued migration to urban centers like Mumbai and Pune will sustain demand.
• Infrastructure Development: Projects like the Mumbai Metro expansion and Pune Ring Road are expected to boost real estate prospects.
• Festive Season: Traditionally, the festive season brings a surge in property transactions, and 2025 is expected to follow this trend.

Conclusion

The decline in Maharashtra housing sales in Q2 2025 marks a period of recalibration for the real estate sector. While the immediate challenges are undeniable, they also pave the way for a healthier and more sustainable market.

As the industry stabilizes and developers align their strategies with buyer expectations, Maharashtra’s real estate market is poised for a brighter future. For prospective buyers and investors, this period of market correction offers an opportunity to explore competitive deals and make informed decisions. By Q4 2025, the market is expected to rebound, setting the stage for another phase of growth and development in Maharashtra.

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