The Indian housing market is beginning to cool down, but prices are still rising overall. According to the latest Real Insight Residential Q1 2025 report by PropTiger.com, price increases have slowed in many major cities. PropTiger.com is part of REA India, which also includes Housing.com.
During the first three months of 2025, Bengaluru and Hyderabad stood out with strong growth. Bengaluru’s home prices jumped 5% from the last quarter, reaching an average of Rs 7,881 per square foot. Hyderabad matched that growth, with prices climbing to Rs 7,412 per square foot. These two cities continue to attract buyers and lead the market.
Other major cities, however, have hit a pause. Delhi NCR, Mumbai Metropolitan Region (MMR), Pune, and Chennai showed no change in prices compared to the previous quarter. This is the second straight quarter without growth in these areas. Experts call this a phase of “cautious consolidation,” where prices stay high but don’t rise further.
Some cities are seeing modest recoveries. Ahmedabad, which saw a price dip in late 2024, bounced back with a 4% rise in Q1 2025. Kolkata followed a similar path, also gaining 4% after a previous drop. These numbers suggest the market is steadying, not shrinking.
Dhruv Agarwala, CEO of Housing.com and PropTiger.com, explained the shift. He said slower price growth is helping genuine buyers return to the market. Many were previously pushed out by speculation and sharp price hikes. This renewed interest from end-users could support a healthier, more stable market in the long run.
From late 2024 into early 2025, most cities began showing more balanced performance. For example, Delhi NCR, which saw major price increases in 2023, stayed flat in Q1 2025. Pune and Chennai also reported no price movement, signaling a period of balance after years of fast growth.
The report links this trend to several key factors. Buyers are now more informed and practical, moving away from speculative purchases. Builders are also adjusting their supply plans to match real demand. This has led to smarter pricing strategies and reduced the risk of price bubbles.
Looking ahead, the report predicts a steady path for India’s housing sector. Developers are likely to launch fewer but more targeted projects, focusing on demand in specific locations. This cautious approach should help the market grow sustainably, without creating too much supply or artificially high prices.
