Mumbai: Housing price growth across India’s top eight residential markets moderated sharply to 6% in 2025, down from 17% in 2024, signaling a phase of price normalization after two years of rapid appreciation, according to PropTiger’s Real Insight – Residential CY 2025 report.
The report indicates that while prices continued to firm through the year, momentum slowed in most markets as developers adopted calibrated supply strategies and buyers showed greater price sensitivity. Bengaluru and Hyderabad emerged as exceptions, posting relatively stronger growth supported by sustained end-user demand.
Among the eight cities, Bengaluru recorded the highest annual price growth at 13%, up from 12% in 2024, while Hyderabad followed with 8% growth, improving significantly from 3% the previous year. In contrast, price appreciation softened across the remaining six cities. Ahmedabad saw an 8% rise, Mumbai Metropolitan Region (MMR) grew 4%, Pune registered 1% growth, Delhi-NCR and Kolkata posted 6% each, while Chennai prices remained flat year-on-year.
Despite the moderation, residential prices across the top eight cities increased by an average of 8% between Q1 and Q4 2025, underscoring market stability rather than a downturn.
Bengaluru continued to outperform on a quarterly basis, with prices rising 21% during 2025 to reach ₹9,500 per sq. ft. in Q4, surpassing Delhi-NCR (₹9,167 per sq. ft.) to become India’s second most expensive housing market after Mumbai MMR, where average prices stood at ₹14,000 per sq. ft.
Commenting on the trends, Mr. Onkar Shetye, Executive Director, Aurum PropTech, said,
“Mumbai MMR price trends through 2025 reflect consolidation in the premium housing segment, while Pune and Ahmedabad remained broadly stable. Delhi-NCR and Kolkata recorded measured price increases amid selective demand, whereas Bengaluru and Hyderabad benefitted from steady end-user absorption.”
The report highlights that inventory overhang remained within comfortable limits, indicating that supply additions were aligned with demand conditions. Unsold inventory growth was more pronounced in higher ticket-size housing segments, reflecting longer purchase decision cycles and lower liquidity compared to mid-income and affordable housing categories.
Mr. Shetye added,
“Resilient pricing alongside moderating sales volumes points to a disciplined market environment. Developers focused on protecting price integrity and project viability rather than volume-led liquidation, creating a stable pricing base heading into 2026.”
Housing Sales and Supply Trends
Residential sales across the top eight cities declined 12% year-on-year to 3,86,365 units in 2025, compared to 4,36,992 units in 2024, marking the lowest annual sales level since 2022.
In the fourth quarter of 2025, sales fell 10% year-on-year and 0.5% quarter-on-quarter to 95,049 units, the weakest quarterly performance since Q2 2023.
On the supply side, new residential launches decreased 6% to 3,61,096 units in 2025, the lowest annual supply since 2021. However, Q4 2025 witnessed a marginal recovery, with supply rising 4% year-on-year to 92,007 units.
The report concludes that India’s residential real estate market entered 2026 on a stable footing, supported by controlled supply, steady pricing, and disciplined developer strategies.
