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Housing price growth across India's top eight residential markets slowed sharply to an average of 6% in 2025, compared to 17% in 2024, reflecting a phase of market normalisation, according to PropTiger. While Bengaluru and Hyderabad continued to record relatively stronger price appreciation, most other cities witnessed muted growth or consolidation after steep increases in the previous year. The report highlighted disciplined supply additions, stable inventory levels and a cautious buyer sentiment amid economic uncertainty. Residential sales declined 12% year-on-year to their lowest level since 2022, while new supply also moderated. Despite slower momentum, PropTiger noted that developers largely protected pricing integrity, indicating a balanced market entering 2026 rather than a sharp correction.
Housing price growth across India's top eight cities moderated significantly in 2025, with average prices rising by 6% compared to a sharp 17% increase recorded in 2024, according to a report by PropTiger.com. The slowdown reflects a period of consolidation after a strong run-up in prices over the previous year, supported by calibrated supply additions and cautious buyer sentiment. Advertisement
The report showed that Bengaluru and Hyderabad continued to outperform other markets. Bengaluru recorded average housing price growth of 13% in 2025, compared to 12% in 2024, while Hyderabad saw an 8% rise, up from 3% a year earlier. This growth was attributed to steady end-user demand and balanced absorption in both cities. In contrast, price momentum weakened across the remaining six cities.
Ahmedabad recorded an 8% rise in average prices, down from 10% in 2024. Mumbai Metropolitan Region (MMR) saw price growth slow sharply to 4% from 18% in the previous year, reflecting consolidation in the premium segment. Pune posted a marginal 1% increase compared to 16% in 2024, while Chennai prices remained flat after a 16% rise in the previous year. Delhi-NCR and Kolkata registered price growth of 6% each, significantly lower than the 49% and 10% growth seen in 2024, respectively.
According to PropTiger's Real Insight Residential CY 2025 report, residential prices across the eight cities increased by an average of 8% between Q1 and Q4 2025, indicating normalisation rather than accelerated growth. Bengaluru emerged as the second most expensive housing market by the end of 2025, with average prices reaching INR 9,500 per sq ft in Q4, surpassing Delhi-NCR at INR 9,167 per sq ft. Mumbai MMR remained the costliest market at around INR 14,000 per sq ft.
Industry executives pointed out that pricing trends reflected a disciplined market environment. Aurum PropTech executive director Onkar Shetye said Mumbai MMR witnessed price consolidation, while Pune and Ahmedabad remained broadly stable. He added that Bengaluru and Hyderabad benefited from consistent end-user demand, while other cities saw selective price increases driven by location-specific demand.
The report also highlighted stable inventory conditions. Inventory overhang remained within comfortable levels, suggesting that supply did not materially outpace demand. Unsold inventory growth was more evident in higher ticket-size homes, reflecting longer decision cycles and lower liquidity compared to mid-income and mass housing segments.
On the demand side, residential sales across the top eight cities declined 12% year-on-year to 386,365 units in 2025, marking the lowest annual sales since 2022. Quarterly sales in Q4 2025 fell 10% year-on-year to 95,049 units, the weakest level since Q2 2023. New supply also moderated, declining 6% year-on-year to 361,096 units in 2025, the lowest since 2021.
PropTiger noted that the combination of moderating sales, controlled supply and resilient pricing created a stable base for the housing market heading into 2026, with developers prioritising project viability and price discipline over aggressive volume-led sales.
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