Home Prices Surge Across Major Cities, Housing Price Index Reveals
Despite early signs of demand softening, housing prices have continued to rise sharply across major Indian cities, according to the latest All-India Housing Price Index (HPI).
Housing PricesReal EstateNcrBengaluruHyderabadReal EstateSep 29, 2025
The index, which tracks housing market trends across 13 major cities, reveals that demand for larger homes and luxury configurations remains resilient, driven by strong investor interest, urban migration, and evolving buyer preferences post-pandemic.
NCR Leads the Pack With Record-Breaking Growth
The National Capital Region (NCR) outpaced all other metros, with an impressive 42-point annual increase in HPI for Q2 2025. The surge reflects a mix of robust job creation, infrastructure upgrades, and rising demand for premium residential corridors. Cities like Noida, Greater Noida, and Gurugram saw particularly high traction across both 2BHK and 3BHK segments.
“Short-term pressures from trade uncertainties notwithstanding, India’s housing sector will continue to garner both attention and attraction as it gradually attains more maturity,” said Praveen Sharma, CEO of Housing.com.
Bengaluru and Hyderabad Maintain Upward Momentum
With a 24-point year-on-year increase, Bengaluru retained its position as the second-best performing city. The tech-driven influx of professionals and sustained demand in prime zones such as Bengaluru South and Outer Ring Road are major contributors to this growth.
Hyderabad, with a 20-point jump, continues to show strong multi-segment demand, especially in areas like ORR West and Hyderabad West.
“India’s housing market showed resilience in Q2 2025, with demand particularly strong in the high-ticket 3BHK segment across NCR, Hyderabad and Bengaluru,” said Shekhar Tomar, Assistant Professor at ISB.
Larger configurations, especially 3BHK and above, are now top choices in metro markets due to shifting post-pandemic lifestyle needs. However, in Tier-2 cities, the market still favours compact and affordable homes, reflecting local economic realities.
While Q2 saw pricing stability in some areas, the overall market outlook for 2025-26 remains cautiously optimistic. The report highlights that “with the 100-basis point repo rate cut in the first half of 2025 and inflation under control, we expect demand momentum... to continue.”
However, challenges remain. The report warns that US tariffs on Indian exports and affordability concerns may weigh on homebuyer sentiment in the coming quarters. That said, stable monetary policy and targeted government support are expected to drive long-term growth.
Frequently Asked Questions
What is the All-India Housing Price Index (HPI)?
The All-India Housing Price Index (HPI) is a collaborative initiative between REA India’s Housing.com and the Indian School of Business (ISB) that tracks housing market trends across 13 major cities in India.
Which city saw the highest increase in housing prices in Q2 2025?
The National Capital Region (NCR) saw the highest increase in housing prices in Q2 2025, with a 42-point annual increase in the HPI.
What factors are driving the demand for larger homes and luxury configurations?
The demand for larger homes and luxury configurations is driven by strong investor interest, urban migration, and evolving buyer preferences post-pandemic.
How are smaller cities performing in the housing market?
In Tier-2 cities, the market still favours compact and affordable homes, reflecting local economic realities.
What challenges does the housing market face in the coming quarters?
The housing market faces challenges such as US tariffs on Indian exports and affordability concerns, which may weigh on homebuyer sentiment in the coming quarters.
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