India’s residential property market is showing early signs of stabilisation, with a notable slowdown in price growth across major cities.
According to Real Insight Residential: Q1 2025, released by PropTiger.com, a part of REA India, the market is entering a phase of cautious consolidation after a sharp post-pandemic surge. While property prices continued to rise on an annual basis, quarter-on-quarter growth moderated in Q1 2025. Cities such as Bengaluru and Hyderabad led with 5% quarterly gains, with average rates climbing to ₹7,881 and ₹7,412 per sq ft, respectively. However, key mature markets like Delhi NCR, MMR, Pune, and Chennai posted flat growth for a second straight quarter—marking a pause after a period of aggressive appreciation. Mid-tier markets followed a similar trend. Ahmedabad registered a 4% QoQ increase after a dip in Q4 2024, and Kolkata mirrored this performance with a 4% rise, recovering from previous declines. Pune remained stable at ₹7,109 per sq ft, showing price resilience after strong upward movement last year.
“The moderation in price growth over the past few quarters signals a more stable market, likely to attract genuine homebuyers who were previously sidelined,” said Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com. He added that a balanced trajectory is essential to support end-user participation without undercutting long-term investor confidence. From Q3 2024 onward, the report notes a consistent tapering in momentum. Even high-growth markets like Delhi NCR, which had recorded double-digit annual gains, saw no movement in Q1 2025. This suggests that the residential segment is aligning more closely with real demand rather than speculative trends. Macro factors driving this shift include a greater proportion of end-users among buyers, rational investor behaviour, and a recalibrated supply pipeline that better reflects market needs. As developers adjust their strategies, new launches are expected to become more measured and targeted.
The report concludes that this phase of cautious consolidation will help ensure healthier long-term growth for India’s housing sector, underpinned by structural strength and market discipline.
Housing Prices Stabilise in Q1 2025
