Indian Housing Market Cools Off: Prices Stabilise Across Major Cities

The Q1 2025 edition of Real Insight Residential by Top Real Estate Platform reveals that India’s residential property market is shifting from rapid post-pandemic growth to a more stable, consolidated phase. While prices have continued to increase year-on-year, the rate of that increase has noticeably slowed.

Bengaluru, Hyderabad Continue to Lead

The report highlights that Bengaluru and Hyderabad were the only Tier-1 cities to post a 5% quarter-on-quarter (QoQ) increase in Q1 2025. Average prices rose to ₹7,881/sqft in Bengaluru and ₹7,412/sqft in Hyderabad.

Meanwhile, other major markets such as Delhi NCR, Mumbai Metropolitan Region (MMR), Pune, and Chennai saw no price changes during the quarter. This flat trend follows a similar performance in Q4 2024, indicating a potential plateau.

Ahmedabad and Kolkata registered moderate QoQ growth of 4% and 3.8% respectively, reinforcing the broader trend of slowed yet steady appreciation.

Market Rebalancing in Favour of End-Users

Quote from Leadership

The Group CEO of Top Real Estate Platform noted that this moderation suggests a market gradually aligning with true end-user demand, rather than speculative activity. According to the executive, this shift is crucial to retaining the value created by developers and investors while re-inviting end-users who were pushed out by soaring prices in previous cycles.

Signs of Stability Across Major Markets

The trend of tempering has been visible since Q3 2024. Recent data for Q1 2025 shows:

• Ahmedabad rebounded with a 4% growth after a dip in Q4 2024
• Kolkata also bounced back with a 4% rise following a 4% drop
• Pune stabilised at ₹7,109/sqft after a strong upward trend in 2023
• Delhi NCR and MMR remained flat after substantial increases last year

These figures suggest that most major Indian real estate markets are now entering a phase of price equilibrium, not decline.

Key Drivers Behind the Market Shift

• End-users now outnumber speculators, driving more realistic demand
• Investor participation remains but is more rational and calculated
• Developers are adjusting supply pipelines to reflect actual demand, not hype

Outlook for 2025: Calibrated Growth Ahead

The report concludes that this consolidation phase is setting the stage for a more balanced and sustainable growth path. With prices stabilising and speculative activity declining, developers are expected to roll out more targeted and calibrated project launches. This approach may reduce market volatility while improving housing accessibility for serious buyers.

Average Residential Property Prices (INR/sqft)

Disclaimer: The information presented in this article is based on data and insights published in the Q1 2025 edition of the "Real Insight Residential" report by Top Real Estate Platform, a part of REA India. While efforts have been made to ensure accuracy and completeness, we do not guarantee the reliability or validity of any data, statistics, or market interpretations provided herein. Readers are advised to conduct their own research or consult a certified real estate professional before making any investment or purchase decisions. This content is intended for informational purposes only and does not constitute financial or investment advice.