Housing price rise growth slowed to 6% in top 8 cities in 2025, sales at 3-year low

Residential market enters slower growth phase as housing price rise moderates in 2025

• Housing price growth in top 8 cities slowed to 6% in 2025 from 17% in 2024.
• Bengaluru and Hyderabad saw stronger price growth, bucking the moderation trend
• Residential sales fell 12 percent in 2025, reaching the lowest level since 2022

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Average housing price growth across India’s top eight cities, including Delhi and Mumbai,  slowed to 6 percent in 2025, down from 17 percent growth in 2024, signaling a moderation in residential market momentum, a report released on February 5 said.

The top eight are Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Pune and Ahmedabad.

According to a report by real estate advisory platform PropTiger.com, Ahmedabad saw average housing prices rise by 8 percent in 2025, compared to 10 percent in 2024, while Mumbai Metropolitan Region (MMR) recorded a sharp drop to 4 percent from 18 percent in 2024.

The moderation was more pronounced in Pune, where housing prices grew by just 1 percent in 2025, a steep fall from 16 percent growth in 2024. Similarly, Delhi-NCR, which witnessed an exceptional 49 percent price surge last year, saw growth ease to 6 percent in 2025, the report said.

However, only Bengaluru and Hyderabad bucked the trend and recorded relatively stronger price appreciation. Bengaluru led the chart with 13 percent average price growth in 2025, marginally higher than the 12 percent rise recorded in 2024. Hyderabad registered 8 percent growth, a notable improvement over the 3 percent increase seen last year.

Kolkata recorded a 6 percent increase in average housing prices, down from 10 percent in 2024, while prices in Chennai remained flat, after rising 16 percent in the previous year, the report said.

Market observers attributed the slowdown to a combination of base effect, affordability concerns, and a more cautious buyer sentiment following steep price hikes in 2024. While demand from end-users continues to support the market, the pace of price appreciation is expected to remain measured in the near term, with city-specific factors playing a larger role in shaping housing trends.

Onkar Shetye, executive director of Aurum PropTech, the company that owns PropTiger.com, said that MMR price trends through 2025 reflects price consolidation in the region's premium market while that of Pune and Ahmedabad remaining broadly stable. Delhi NCR and Kolkata also saw measured price increases amid selective demand. Bengaluru and Hyderabad showed steady end-user demand and balanced absorption.

“Overall, resilient pricing alongside moderating sales volumes highlights a disciplined, supply-calibrated market, where developers protected price integrity and inventory remained well managed-creating a stable pricing base heading into 2026,” he said.

According to the report, unsold inventory growth was more visible in higher ticket-size categories, reflecting longer decision cycles and lower liquidity compared to mass and mid-income housing.

Housing sales decline by 12 percent

According to the report, residential sales declined 12 percent across the country at 3,86,365 units in 2025, down from 4,36,992 units in 2024. This is the lowest annual sales since 2022.

In Q4 2025, sales contracted 10 percent YoY and 0.5 percent QoQ to 95,049 units. This is the lowest quarterly sales since Q2 2023 (80,250 units).

The total new supply fell 6 percent to 3,61,096 units in 2025 as against 3,85,221 units in 2024. This is the lowest annual supply since 2021. In the October-December (Q4) 2025 quarter, supply rose 4 percent YoY and 0.2 percent QoQ to 92,007 units.