Property prices across India witnessed a broad-based upswing in the first quarter of FY26, with 45 of the 50 monitored cities recording annual appreciation, according to the latest National Housing Bank (NHB) Residential Price Index (RESIDEX). Experts attribute the growth to moderating home loan interest rates, rising urban demand, and sustained residential development across major markets.
The NHB’s 50-city Housing Price Index, compiled from valuations provided by banks and housing finance companies, indicated an annual rise of 5.7% in Q1 FY26, slightly lower than 6.6% during the same period last year. Despite the overall positive trend, five cities experienced declines, with Howrah leading the fall at 6.1%, followed by Kochi (5.5%) and Thiruvananthapuram (4.8%). Officials highlighted that these declines primarily reflect regional supply-demand imbalances and affordability constraints. Among primary residential markets, the report noted pronounced growth. Ahmedabad saw property values increase by 6.8%, Bengaluru by 9.1%, and Chennai by 7% year-on-year. Other significant markets included Hyderabad (2.3%), Kolkata (6.8%), Mumbai (5.2%), and Pune (6%). Delhi’s property prices remained largely unchanged compared with Q1 FY25, reflecting a stabilising market in the capital region.
Quarter-on-quarter, the 50-city index posted a modest 0.5% rise, continuing a pattern of incremental gains observed since September 2021. Experts emphasised that this gradual, steady appreciation underscores the resilience of India’s urban housing sector even amid broader economic fluctuations. Residential analysts point out that falling home loan rates have played a key role in bolstering buyer sentiment. Following a 100-basis-point moderation in February 2025, borrowing costs for housing became more attractive, particularly in tier-1 and tier-2 cities where affordability remains a key consideration for first-time buyers and investors.
“The Q1 FY26 property trends reflect a dynamic urban housing market where demand is increasingly concentrated in cities offering strong employment opportunities, modern infrastructure, and well-planned residential layouts,” said an NHB official. “Cities that have witnessed price moderation are largely regional markets adjusting to slower absorption rates, while the growth in metro cities highlights persistent investor confidence and end-user demand.” Real estate experts further observe that sustainable urbanisation, improved connectivity, and planned township developments are shaping market behaviour. High-quality, energy-efficient residential projects are increasingly influencing pricing, with homebuyers showing preference for eco-friendly and integrated communities.
As India’s housing market continues to evolve, these patterns underscore the importance of regulatory oversight, financial accessibility, and infrastructural support. Balanced growth across cities will be critical for maintaining affordability while meeting the expanding demand for urban homes.
Property Prices Rise in 45 Cities as Home Loan Rates Ease in Q1 FY26
