Table of Content
▲- Housing Price Growth Trends in 2025: A Market in Transition
- City-Wise Housing Price Growth Across India
- Why Did Housing Price Growth Slow Down in 2025?
- Residential Sales and Supply Trends in 2025
- Inventory Levels and Market Stability
- Expert Views on Housing Price Growth
- Implications for Homebuyers and Investors
- Conclusion
India’s residential real estate market witnessed a noticeable shift in 2025 as housing price growth moderated to 6% across the top eight cities. This marks a sharp decline from the 17% surge recorded in 2024, signalling a phase of market stabilisation rather than rapid escalation. Despite the slowdown, select cities like Bengaluru and Hyderabad stood out with stronger price appreciation, highlighting the uneven pace of housing price growth across the country.
The evolving trend reflects a more balanced market where demand, supply, and affordability are aligning after years of aggressive price escalation.
Housing Price Growth Trends in 2025: A Market in Transition
The year 2025 marked a turning point for India’s housing market. While residential property prices continued to rise, the pace of housing price growth slowed significantly compared to the previous year. This moderation indicates that the market is moving from an expansionary phase to a more sustainable trajectory.
Instead of sharp spikes, housing price growth in 2025 was characterised by steady and incremental increases. This shift suggests that developers and buyers are adjusting to economic realities, including affordability constraints and evolving demand patterns.
Also Read: MahaRERA Allows Homebuyers to Take Over Stalled Housing Project
City-Wise Housing Price Growth Across India
Strong Performers: Bengaluru and Hyderabad
Among India’s top cities, Bengaluru emerged as the strongest performer in 2025, recording housing price growth of around 13%. This growth was driven by robust end-user demand, strong employment generation in the IT sector, and sustained infrastructure development.
Hyderabad also recorded healthy housing price growth of approximately 8%, supported by expanding commercial activity and residential demand. These two cities demonstrated resilience and consistent buyer interest, even as the overall market slowed.
Moderate and Slower Growth in Other Cities
In contrast, several major cities experienced slower housing price growth in 2025:
- Ahmedabad witnessed moderate price appreciation, reflecting stable demand.
- Mumbai Metropolitan Region (MMR) saw limited growth, indicating consolidation in the premium housing segment.
- Pune recorded marginal increases, signalling cautious buyer sentiment.
- Delhi-NCR experienced moderate growth after an exceptionally high surge in 2024.
- Kolkata saw steady but subdued growth.
- Chennai recorded almost flat price movement, highlighting market saturation.
This divergence in housing price growth across cities underscores the importance of regional economic drivers in shaping real estate trends.
Why Did Housing Price Growth Slow Down in 2025?
Several factors contributed to the moderation in housing price growth during 2025:
1. Normalisation After Rapid Growth
The extraordinary price surge in 2024 created a high base effect, making it difficult to sustain similar levels of housing price growth in 2025.
2. Affordability Pressures
Rising property prices, coupled with inflation and interest rates, impacted buyer affordability, leading to slower demand in some markets.
3. Controlled Supply by Developers
Developers adopted a cautious approach by aligning new launches with demand, preventing oversupply and stabilising housing price growth.
4. Shift in Buyer Preferences
Buyers increasingly prioritised value-for-money properties, influencing pricing strategies and moderating housing price growth.
Residential Sales and Supply Trends in 2025
The slowdown in housing price growth was accompanied by a decline in residential sales across India’s top cities. Total housing sales in 2025 fell by around 12% compared to 2024, reflecting cautious buyer sentiment.
Similarly, new housing supply also declined, indicating that developers were focusing on maintaining price stability rather than aggressive expansion. Quarterly data showed consistent but slower activity, reinforcing the trend of market stabilisation.
Inventory Levels and Market Stability
Despite slower housing price growth, inventory levels remained within manageable limits. Unsold inventory increased slightly in higher-ticket segments, suggesting longer decision-making cycles among premium buyers.
However, the overall market remained stable, with developers maintaining price discipline and avoiding distress sales. This balance between demand and supply helped sustain housing price growth at a moderate level.
Expert Views on Housing Price Growth
Real estate experts believe that the moderation in housing price growth is a sign of a healthy market rather than a slowdown. According to industry analysts, stable price appreciation, controlled supply, and steady demand indicate that the housing market is entering a mature phase.
Experts also highlight that cities with strong economic fundamentals will continue to witness steady housing price growth, while saturated markets may experience slower appreciation.
Also Read: MHADA Offers 120 Flats in Mumbai Under First-Come-First-Served Scheme
Implications for Homebuyers and Investors
The evolving trend in housing price growth presents both opportunities and challenges:
For Homebuyers
- Better negotiating power due to moderate price increases
- More stable market conditions
- Improved affordability compared to previous years
For Investors
- Long-term growth potential in emerging cities
- Opportunities in markets with consistent housing price growth
- Need for careful city-wise investment strategies
Conclusion
The slowdown in housing price growth to 6% in 2025 marks a significant shift in India’s real estate cycle. While some cities demonstrated strong momentum, others experienced consolidation, reflecting a more balanced and sustainable market environment.
As India’s housing market evolves, housing price growth will increasingly depend on economic fundamentals, infrastructure development, and buyer sentiment. For homebuyers and investors alike, understanding these trends will be crucial in navigating the future of India’s real estate landscape.
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Ans 1. Housing price growth slowed in 2025 mainly due to affordability pressure, high base effect from 2024, cautious buyer sentiment, and controlled supply by developers, which led to a more stable and balanced market.
Ans 2. Bengaluru recorded the highest housing price growth at around 13%, followed by Hyderabad at nearly 8%, driven by strong IT demand, infrastructure growth, and consistent end-user interest.
Ans 3. Housing prices did not fall in 2025; instead, they continued to rise at a slower pace, indicating market stabilisation rather than a decline.
Ans 4. Cities like Mumbai, Pune, Delhi-NCR, Chennai, Kolkata, and Ahmedabad witnessed moderate to slow housing price growth due to market saturation, cautious buyers, and premium segment consolidation.
Ans 5. Yes, slower price growth benefits homebuyers by improving affordability, increasing negotiation power, and creating more stable market conditions compared to rapid price hikes.
Ans 6. For investors, the slowdown signals the need for city-wise strategies, with better long-term opportunities in cities showing consistent economic growth and emerging Tier-II and Tier-III markets.
Ans 7. Residential sales declined by about 12% in 2025 compared to 2024, reflecting cautious buyer sentiment and longer decision-making cycles in the housing market.
Ans 8. Housing prices are expected to rise in 2026 but at a stable and moderate pace, supported by infrastructure development, urbanisation, and economic growth rather than sharp surges.
Ans 9. India’s housing market is not slowing down but stabilising, as steady price growth, controlled supply, and balanced demand indicate a transition toward a mature and sustainable real estate cycle.
Ans 10. Cities with strong economic fundamentals like Bengaluru, Hyderabad, and emerging Tier-II and Tier-III cities are likely to drive future housing price growth in India.