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Indian Residential Market Dynamics Q2 2025

India's housing market hit an inflection point in the first half of 2025. Sales slipped to 134,776 units, marking the first post-pandemic H1 decline with a 13% drop year-on-year. Yet, the story isn't just about slowdown, Bengaluru, Mumbai, and Pune together drove 63% of sales, reinforcing their status as residential powerhouses. Interestingly, 26% of transactions came from fresh launches, highlighting strong buyer trust in reputed developers. Despite muted H1 numbers, Q2 2025 showed resilience with a 7% quarter-on-quarter rise, led by robust demand in the premium housing segment. Homes priced above ₹1 crore now form 62% of sales, up from 51% last year, while mass housing continues to shrink. City trends stood out too; Bengaluru led in the ₹1 to 1.5 crore range, Mumbai in the ₹1.5 to 3 crore bracket, and Pune in the ₹50 to 75 lakh category.

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