Bengaluru Residential Property Market Surges by 13% in Q4 2025
Bengaluru's primary residential property market witnessed a significant 13% appreciation in the fourth quarter of the fiscal year 2025, outpacing other major cities in India. Explore the trends in 7 other key cities and the factors driving this surge.
BengaluruProperty PricesReal EstateQ4 2025HpiReal EstateMay 23, 2025
India’s eight key primary residential markets witnessed appreciating property prices during the period January-March 2025. Notably, Ahmedabad saw a 6.1 per cent increase, Bengaluru a substantial 13.1 per cent, Chennai 9.0 per cent, Delhi 2.9 per cent, Hyderabad 4.8 per cent, Kolkata 9.6 per cent, Mumbai 5.9 per cent, and Pune 6.8 per cent.
The annual change in the Housing Price Index (HPI @ Assessment Price) varied widely across cities, ranging from an increase of 45.8 per cent in Navi Mumbai to a decline of 3.5 per cent in Howrah. Out of the 50 cities covered, 2 cities (Howrah and Thiruvananthapuram) registered a decline in property prices.
On a sequential (Q-o-Q) basis, the 50-city index registered an expansion of 1.9 per cent in January-March 2025. The index has shown an increasing trend on a Q-o-Q basis since September 2021. The index recorded a sequential increase in 43 cities out of 50, with Navi Mumbai recording the highest sequential increase of 17.3 per cent, followed by Bhubaneshwar (8.5 per cent), Gurugram (7.5 per cent), and Noida (7.0 per cent). Raipur recorded the maximum sequential decrease of 2.6 per cent in the HPI @ Assessment Price.
The significant appreciation in Bengaluru's property market can be attributed to several factors, including robust economic growth, a thriving IT industry, and a growing population. The city's infrastructure development, such as the expansion of the metro network and the improvement of road connectivity, has also played a crucial role in driving property values higher. Additionally, the increasing demand for residential properties from both local and international buyers has further fueled the market's growth.
However, this surge in property prices also poses challenges, particularly for first-time homebuyers and low-income groups. The rising cost of living and the need for affordable housing solutions have become pressing issues that policymakers and developers must address. The government's efforts to promote affordable housing through various initiatives and incentives are expected to play a key role in ensuring that the market remains sustainable and accessible to all segments of the population.
In conclusion, the robust performance of Bengaluru's primary residential property market in Q4 2025 reflects the city's strong economic fundamentals and its attractiveness as a preferred location for living and investment. While the market's growth is a positive sign, it is essential to ensure that it remains balanced and inclusive, benefiting all stakeholders in the long run.
Frequently Asked Questions
What is the NHB RESIDEX?
The NHB RESIDEX is the National Housing Bank's Residential Housing Price Index, which measures the changes in property prices across 48 cities in India.
Which city saw the highest increase in property prices in Q4 2025?
Navi Mumbai recorded the highest increase in property prices with a 45.8 per cent rise in the Housing Price Index (HPI @ Assessment Price).
What factors contributed to the 13% appreciation in Bengaluru's property market?
The significant appreciation in Bengaluru's property market can be attributed to robust economic growth, a thriving IT industry, infrastructure development, and increasing demand from local and international buyers.
What challenges does the rising property market pose?
The rising property market poses challenges for first-time homebuyers and low-income groups, making affordable housing a pressing issue. Policymakers and developers need to address these challenges to ensure the market remains sustainable and inclusive.
How is the government addressing the need for affordable housing?
The government is promoting affordable housing through various initiatives and incentives, aiming to make the property market more accessible to all segments of the population.
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