India's major housing markets see price plateauing after flat quarters

Indian residential market enters phase of cautious consolidation after period of rapid growth

While residential property prices in India have continued to rise on a year-on-year (YoY) basis, the pace of growth has clearly moderated in recent quarters.

According to data from PropTiger.com, the transaction and advisory services platform of REA India (which also owns Housing.com), Bengaluru and Hyderabad recorded 5 percent quarterly increases in Q1 of 2025.

Average prices in Bengaluru rose to Rs 7,881 per sq ft, while in Hyderabad, it touched Rs 7,412 per sq ft. In contrast, key mature markets, such as Delhi NCR, Mumbai Metropolitan Region (MMR), Pune and Chennai, recorded no change, following an already flat previous quarter, suggesting a plateauing of prices.

Average prices in Delhi, MMR, Pune and Chennai remained still at Rs 8,106 per sq ft, Rs 12,600 per sq ft, Rs 7,109 per sq ft and Rs 7,173 per sq ft, respectively. Other markets like Kolkata (Rs 5,839 per sq ft) and Ahmedabad (Rs 4,568 per sq ft) also saw moderate increases of 4 percent and 3.8 percent, respectively, in Q1 of 2025.

Dhruv Agarwala, Group CEO, Housing.com and PropTiger.com, said that the moderation in price growth observed over the past few quarters indicates a stabilising market dynamic, likely encouraging the return of end-users previously displaced by speculative activity.

Related stories

Ashish Mishra

Prinicipal Correspondent|moneycontrol

• 
  Logistics realty demand at all-time high, 3PL, e-commerce drive 55.3-msf absorption
• 
  Noida Authority cracks down on builders defaulting on payments even after enjoying concessions
• 
  UPRERA greenlights Rs 1,948-crore worth of projects; realty growth spreads to Jhansi, Firozabad

“This more measured trajectory is critical for sustaining end-user participation while maintaining the value built by investors and developers. In 2025, the market is expected to undergo further consolidation, reinforcing structural fundamentals and enabling steady, sustainable growth,” he said.

The shift towards moderation became particularly evident from Q3 2024 onwards. Between Q4 2024 and Q1 2025, most cities either held steady or posted low single-digit gains.

Key factors behind consolidation

Experts said that the stabilisation phase can be attributed to multiple factors, which include a more discerning buyer base dominated by end-users, continued but rationalised investor interest and a supply pipeline adjusting to real demand rather than speculative pushes.

They predicted that such cautious consolidation is likely to set the stage for a more sustainable growth path. With prices plateauing in many cities and rising modestly in others, developers are likely to respond with more calibrated launches. This, in turn, will help maintain momentum while avoiding overheating in the sector.

Aman Sharma, Managing Director and Founder of Aarize Group, highlighted that the recent stabilisation of residential property prices in mature markets, such as Delhi NCR, signifies a healthy and sustainable phase in the real estate cycle.

“For discerning homebuyers, it offers an opportune moment to make well-considered investment decisions, free from the pressure of escalating prices. From a developer’s perspective, this period of price stability strengthens buyer confidence, enables strategic long-term planning, and highlights the market’s maturity,” he said.