Indian residential market prices cool down as growth moderates, Bengaluru and Hyderabad drive growth: report
The prices of the residential segment in eight cities of the Indian real estate market have cooled down, and there has been a moderation in the growth, according to a report released by PropTiger.com titled 'Real Insight Residential: Q1 2025' India real estate update: The prices of the residential segment in eight cities of the Indian real estate market have cooled down, and there has been a moderation in the growth. (Picture for representational purposes only)(Mehul R Thakkar/HT)
PropTiger.com, the transaction and advisory services platform part of REA India (which also owns Housing.com), revealed in its report that while residential property prices in India have continued to rise year-on-year, the pace of growth has clearly moderated in recent quarters. After a period of rapid post-pandemic expansion, the market now appears to be entering a phase of cautious consolidation.
Also Read: Are Mumbai real estate prices moderating, giving homebuyers more room to negotiate? 'Market cooling, not crashing'
According to the report, cities such as Bengaluru and Hyderabad continue to drive growth, with both cities recording 5% quarterly increases in Q1 2025. Bengaluru's average prices rose to ₹ 7,881 per sq ft, while Hyderabad touched ₹ 7,412 per sq ft.
In contrast, key mature markets such as Delhi NCR, MMR (Mumbai Metropolitan Region), Pune and Chennai recorded no quarterly change in average prices following an already flat previous quarter, suggesting a plateauing of prices, the report said.
The report added that Ahmedabad and Kolkata also saw moderate increases of 3.8% and 4% respectively in Q1 2025, reinforcing the trend of steady—though decelerating—growth.
Also Read: Bengaluru, Mumbai, Delhi among top 15 global cities for prime residential price growth: Knight Frank report
'The moderation in price growth observed over the past few quarters indicates a stabilising market dynamic, likely encouraging the return of end-users previously displaced by speculative activity,' said Mr. Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com.
'This more measured trajectory is critical for sustaining end-user participation while maintaining the value built by investors and developers. In 2025, the market is expected to undergo further consolidation, reinforcing structural fundamentals and enabling steady, sustainable growth," he added.
According to the report, the shift toward moderation became particularly evident from Q3 2024 onwards. Between Q4 2024 and Q1 2025, most cities either held steady or posted low single-digit gains. For example, Delhi NCR, MMR and Pune's per sq ft price remained steady at ₹ 8,106 per sq ft, ₹ 12,600 per sq ft and ₹ 7,109 per sq ft.
Also Read: Check out Akshay Kumar's return on investment from the sale of six properties in Mumbai Market outlook?
The report concluded that this cautious consolidation sets the stage for a more sustainable growth path. With prices plateauing in many cities and rising modestly in others, developers are likely to respond with more calibrated launches. This, in turn, will help maintain momentum while avoiding overheating in the sector, the report said.
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