Kolkata Spearheads 9% Residential Price Surge Across India's Prime Cities in FY25

Real estate market data revealed that residential property prices in India's top nine metropolitan areas experienced a significant upward trajectory of 9% during FY 2024-25, with the weighted average launch price reaching ₹13,197 per square foot compared to ₹12,569 per square foot in the previous fiscal year, as per PropEquity's latest analysis.

Major Cities Witness Mixed Price Performance

The comprehensive study covered nine key urban centers including Bengaluru real estate evolution, Chennai real estate trends, Hyderabad property market, Kolkata, Delhi-NCR, Mumbai real estate landscape, Navi Mumbai market dynamics, Thane, and Pune. Notably, Mumbai and Navi Mumbai bucked the trend with a 3% price decline, presenting unique opportunities for potential homebuyers in India's most coveted real estate destinations.

City-Specific Price Movement Analysis

Market analysis indicated that Kolkata dominated the price appreciation chart with a remarkable 29% year-on-year increase, followed by Thane's impressive 17% growth, Bengaluru's solid 15% rise, and Pune's steady 10% advancement. Meanwhile, Delhi-NCR and Hyderabad both registered a moderate 5% growth each, while Chennai posted a 4% increase. The data highlighted that only Mumbai and Navi Mumbai witnessed price corrections during this period.

Supply-Demand Dynamics Shape Market Trends

Industry experts attributed the widespread price strengthening primarily to escalating input costs encompassing land acquisition, labor expenses, and construction materials, rather than demand-driven growth. The market experienced a notable 23% decline in housing sales volumes to 1,05,791 units, while new supply dropped significantly by 34% to 80,774 units during the January-March 2025 quarter.

Two-Year Growth Trajectory Review

The comparative analysis between FY23 and FY25 demonstrated an overall 18% price appreciation across the nine cities. Bengaluru emerged as the standout performer with an exceptional 44% rise over the two-year period, followed by Kolkata's 29% growth and Chennai's 25% increase, reinforcing these cities' position as top real estate investment destinations.

Industry Expert Perspective

Prashant Sharma, President of NAREDCO Maharashtra, provided insights into the market dynamics, stating that the 9% annual price increase demonstrated sustained confidence in residential real estate sector. He emphasized that this growth reflected homebuyer aspirations supported by infrastructure development and enhanced connectivity. Sharma particularly highlighted that Mumbai and Navi Mumbai markets currently offered strategic entry opportunities for discerning investors at attractive price points.

Comprehensive Price Performance Matrix

Market Outlook and Investment Implications

Despite the cooling demand in FY25 characterized by reduced sales volumes and supply constraints, housing prices maintained their upward momentum, demonstrating real estate's continued role as an inflation hedge against rising input costs. For potential investors, the current scenario presents strategic opportunities, particularly in Mumbai and Navi Mumbai markets which offer rare entry points, while Bengaluru and Kolkata continue to lead India's residential price appreciation narrative.