India’s housing price index (HPI) rose to 132 in March 2025, marking an eight-point year-on-year increase across 13 major cities, driven by sustained demand for residential properties, according to a report by REA India and the Indian School of Business.
Delhi NCR led the surge with a 42-point jump compared to the previous year, fuelled by investor interest in premium corridors, despite affordability pressures. Bengaluru saw a 29-point rise, though recent trends suggest prices may be stabilising. Notably, the city also witnessed a sharp uptick in demand for 1BHK units, indicating a shift in buyer preferences amid rising real estate costs.
The index for 3BHK units jumped 12 points in March alone, while 2BHKs, still the most popular among the middle class, remained steady with an index value of 132, it said.
The Housing Price Index (HPI), a joint initiative between REA India’s real estate classified platform Housing.com and the Indian School of Business (ISB), tracks price trends across 13 cities.These are Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune.
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The housing price index of 13 major cities rose by eight points year-on-year to 132 during March this year on strong demand for residential properties, according to a report by REA India and Indian School of Business.
The Housing Price Index (HPI), a joint initiative between REA India’s real estate classified platform Housing.com and the Indian School of Business (ISB), tracks price trends across 13 cities.
Praveen Sharma, CEO of REA India (Housing.com), noted that India’s housing market is undergoing a “healthy consolidation.” He said the recent period of price stagnation follows an extended bull run and is likely to set the foundation for more sustainable growth. He also said that improving affordability, rate cuts, and lifestyle-driven demand could encourage more buyers, especially those priced out in the previous quarter, to return to the market.
According to Shekhar Tomar, Assistant Professor of Economics and Public Policy, ISB, the current period of stability signals a more mature housing cycle. “This price stability is not a sign of weakness but of balance,” he said. “From Delhi to Ahmedabad, demand remains steady thanks to rising incomes, lifestyle changes, and a shift toward long-term end-user purchases.”
Hyderabad saw a 25-point annual increase, with high demand continuing into 2025, although there were early signs of cooling. In Ahmedabad, the index moved from 113 to 121 owing to steady interest in 1BHKs and rental yield-driven investments, the report said.
Chennai posted a modest 8-point increase year-on-year but declined slightly quarter-on-quarter, suggesting a short-term correction. Buyers in the city are leaning towards smaller units, with larger configurations losing traction. Kolkata registered a 15-point annual rise, reflecting steady demand in an affordability-driven market where smaller homes dominate.
In contrast, Mumbai’s housing market showed more subdued movement, recording only a 5-point annual gain. The city’s high base continues to weigh on growth, although demand for compact homes like 1BHKs remains solid. Pune was the only major city to see a dip in the index, down 4 points on both annual and quarterly bases. This is attributed to uncertainties in the tech sector, although interest in larger 3BHKs among serious buyers continues to be strong, the report said.
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