Housing Price Growth Slows to 6% in Top Eight Cities, Bengaluru Leads the Pack
According to the Real Insight – Residential CY 2025 report by PropTiger.com, the average housing price growth across India's top eight cities has slowed to 6% in 2025. This is a notable decrease from the 17% growth recorded in 2024. The report suggests that the market has entered a phase of normalisation, with price increases aligning more closely with supply and demand fundamentals, and a disciplined approach from developers.
The report highlighted that while overall price growth moderated, Bengaluru emerged as a standout market, registering a 21% annual growth rate. This growth brought the average housing price in Bengaluru to Rs 9,500 per sq. ft. in Q4 2025, positioning it as the second most expensive housing market after the Mumbai Metropolitan Region (MMR), which stood at Rs 14,000 per sq. ft. in Q4. Delhi NCR followed with an average price of Rs 9,167 per sq. ft., reflecting continued urban demand.
Price growth in other cities showed varying trends. Hyderabad saw an 8% increase in 2025, up from 3% in 2024, while Bengaluru recorded a 13% increase, compared to 12% in the prior year. In contrast, other cities experienced a significant slowdown: Mumbai MMR at 4% (down from 18% in 2024), Pune at 1% (16% in 2024), Ahmedabad at 8% (10% in 2024), Delhi NCR at 6% (49% in 2024), Kolkata at 6% (10% in 2024), and Chennai remained flat (16% in 2024).
Onkar Shetye, Executive Director of Aurum PropTech, commented on the trends, stating, “Mumbai MMR price trends through 2025 reflect price consolidation in the region's premium market, while Pune and Ahmedabad remained broadly stable. Delhi NCR and Kolkata saw measured price increases amid selective demand. Bengaluru and Hyderabad showed steady end-user demand and balanced absorption.”
Analysts noted that the market's resilience was underpinned by a disciplined supply approach. The report highlighted that resilient pricing alongside moderating sales volumes indicated a well-calibrated market where developers protected price integrity and inventory was well managed, creating a stable pricing base heading into 2026.
Inventory overhang remained within comfortable limits throughout the year, suggesting that supply did not significantly outpace demand. The report observed that unsold inventory growth was more visible in higher ticket-size segments, while mass and mid-income housing maintained favourable liquidity and quicker sales cycles.
Shetye added that the combination of rising prices, stable quarterly increments, and controlled supply additions indicated that inventory levels remained well managed through 2025. “The market continued to operate within a comfort zone, with developers prioritising price integrity and project viability over volume-led liquidation,” he said.
These trends suggest that, despite the slowdown in price growth, India’s housing market in 2025 operated within a stable framework, with developers focusing on maintaining price discipline rather than boosting volumes, supporting a balanced environment heading into the next year.
