The Indian housing market is showing signs of measured cooling, as new data from PropTiger.com’s Real Insight Residential: Q1 2025 report indicates a visible slowdown in the rate of price growth across key urban centers. The platform, a part of REA India alongside Housing.com, found that while home prices have continued to rise on an annual basis, quarterly growth has eased notably in recent months.
The first quarter of 2025 saw cities like Bengaluru and Hyderabad lead the market in terms of price increases. Bengaluru posted a 5 per cent quarter-over-quarter gain, bringing average residential rates to Rs 7,881 per square foot. Hyderabad matched this pace, with prices moving up to Rs 7,412 per square foot. These two cities remain growth hotspots even as other metros begin to flatten out.
In contrast, established markets such as Delhi NCR, Mumbai Metropolitan Region (MMR), Pune and Chennai showed no change in residential prices compared to the previous quarter. This marks the second consecutive quarter of zero growth for these cities, signaling a pause after a strong run-up over the past two years. The report describes this phase as a “cautious consolidation” rather than a downturn, with prices stabilising at elevated levels.
Ahmedabad and Kolkata also showed positive, though moderate, growth trends. Ahmedabad recovered from a decline in late 2024, rising 4 per cent during the quarter. Kolkata followed a similar pattern, bouncing back with a 4 per cent quarterly gain after falling in the previous quarter. These movements reflect a market that is stabilising rather than retreating, as cities adjust to more realistic demand and supply dynamics.
Industry observers attribute the shift in market behaviour to a broad realignment of demand. According to Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, the reduced pace of price increases is helping re-engage serious homebuyers who were previously sidelined by speculation. He noted that the return of end-user participation will be key to maintaining long-term market health. Agarwala highlighted that this controlled trajectory will enable developers and investors to sustain gains without triggering pricing bubbles.
From late 2024 into early 2025, market performance across Indian cities became more uniform, with most urban centres either holding prices steady or showing minimal increases. Delhi NCR, which had registered sharp price hikes throughout 2023, has now entered a holding phase, posting no increase during Q1 2025. Pune also remained stable with no price movement, after experiencing consistent appreciation in the past year. Chennai’s pricing, too, showed no change, indicating equilibrium after sustained growth periods.
The report notes that this current phase of moderation has been driven by multiple macro-level factors. A more informed and end-user-led buyer base has replaced speculative investors in many cities. Additionally, developers have started aligning supply pipelines with actual market demand, leading to more grounded pricing strategies. Investor interest, while still present, has become more rational, focusing on long-term value over short-term returns.
Looking ahead, the PropTiger study forecasts that India’s residential property sector will continue to follow a stable growth path. Developers are expected to adopt more cautious launch plans, focusing on project viability and location-specific demand. This is anticipated to help maintain momentum without triggering excess supply or inflated pricing.
