Maharashtra's Real Estate Slowdown Strikes Thane Hardest
PropEquity’s latest Q3 2025 report highlights Thane's sharpest housing sales decline among India's nine top cities–an overwhelming 28% year-over-year drop from 20,620 to 14,877 units. This shrinkage is part of a significant regional slump affecting Western Maharashtra's entire real estate sector. Mumbai’s sales dipped 8% to 9,691 units, Pune slumped 16% to 17,762 units, and Navi Mumbai softened 6% to 7,212 units in September-November 2025.
A Regional Split in Market Behaviour
Data shows a clear geographic division:
- Western Maharashtra cities: Sharp declines across major areas
- Southern/Eastern cities: Bengaluru (+21%), Chennai (+16%), and Kolkata (+25%) experienced strong growth
- Northern markets: Delhi-NCR and Hyderabad maintained modest 4% yearly increases
This disparity hints at shifting buyer preferences and local economic factors remaking India's housing scene.
Factors Behind the Decline in Western Cities
Several connected reasons clarify the slowdown in Western Maharashtra:
- Pre-Festive Stagnation: According to TREN reports, seasonal trends often trigger temporary demand lulls before major holidays
- Price-Value Realignment: Though Thane’s prices spiked 46% since 2022 (now ₹19,800 per sq. ft.), buyer reluctance has grown at these levels
- Supply-Demand Timing: Developers delayed launching new projects, expecting festive demand, leading to temporary inventory shortages
- Economic Shifts: Manufacturing and IT sector growth increasingly favour southern cities over traditional western hubs
A Ray of Hope: Fundamental Market Strength
Samir Jasuja, PropEquity’s CEO, highlights the healthy market foundations: “New housing launches are still trailing sales across India, indicating organic demand instead of speculative activity.” Key strengths include:
- Thane’s transformation from a "cost-effective Mumbai suburb” to a lasting lifestyle hub
- Dominance of end-users (75% millennials/professionals) instead of speculative investors
- Upcoming infrastructure projects enhance long-term value propositions.
- Price absorption remains solid despite volume reduction
Looking Forward to Thane’s Market
Industry observers anticipate a seasonal recovery:
- Festive season spike: Past trends suggest Diwali typically lifts quarterly sales by 15-20%
- Premium segment resilience: Hiranandani Estate listings show ₹17,000-₹23,500 per sq. ft. premium units sustaining prices
- Strategic rebalancing: Developers like Lodha and Godrej are readjusting launch timelines to match absorption rates
Though Maharashtra’s real estate hubs face temporary hurdles, Thane’s growth story, backed by infrastructure, remains solid. Consumers now prioritise lifestyle integration over mere price benefits, marking market maturity over fundamental weakness. The correction now seems more like a standard market breath rather than a systemic crisis.