Indian Real Estate Market Sees Robust Growth in Q2 2025: Key Cities Lead the Surge
India's housing market witnesses a 3.5% growth in Q2 2025, driven by strong demand and significant infrastructure projects in major cities.
Real EstateHousing MarketInfrastructureProperty DemandPrice AppreciationReal Estate NewsJul 07, 2025
The Q2 2025 PropIndex shows demand for residential property grew 4.6% QoQ, indicating a healthy and dynamic market. However, year-on-year (YoY) demand remained largely flat with just a 0.3% uptick, suggesting a period of stabilization following sharp post-pandemic rebounds.
A notable trend this quarter was a slowdown in new housing supply, which hit its lowest level in five quarters. Despite this, buyer appetite remained strong—especially in the affordable housing segment. Properties priced below ₹30 lakh and compact 1BHK units saw demand consistently outstripping supply, fuelling competitive pricing pressures.
Regionally, India’s IT hubs—Bengaluru, Hyderabad, Gurugram, and Noida—continued to show a clear preference for larger homes, with 2BHK and 3BHK units making up nearly 80% of demand in these markets. Meanwhile, the Mumbai Metropolitan Region (MMR) remained focused on compact living, with 1BHK and 2BHK configurations leading buyer interest.
Cities with major ongoing infrastructure projects recorded the strongest price appreciation. Pune (up 39.4% YoY), Greater Noida (35.3% YoY), and Kolkata (33.2% YoY) stood out thanks to improved connectivity and landmark developments such as the Navi Mumbai International Airport and Mumbai Trans Harbour Link.
Commenting on the findings, Magicbricks Chief Marketing Officer Prasun Kumar said, “The Q2 2025 PropIndex clearly indicates a maturing Indian real estate market, driven by genuine end-user demand and the transformative impact of infrastructure.”
As India’s residential real estate market evolves, analysts expect the combination of solid end-user demand, strategic infrastructure investment, and policy support to keep the growth trajectory positive in the coming quarters.
Frequently Asked Questions
What is the overall growth in India's residential real estate market in Q2 2025?
India’s residential real estate market witnessed a 3.5% growth in Q2 2025, according to the Magicbricks PropIndex report.
How did the demand for residential property change in Q2 2025 compared to the previous quarter?
The demand for residential property grew 4.6% quarter-on-quarter (QoQ) in Q2 2025.
Which segment of the housing market saw the highest demand in Q2 2025?
The affordable housing segment, particularly properties priced below ₹30 lakh and compact 1BHK units, saw the highest demand in Q2 2025.
Which cities showed the strongest price appreciation in Q2 2025?
Pune, Greater Noida, and Kolkata showed the strongest price appreciation in Q2 2025, with year-on-year (YoY) increases of 39.4%, 35.3%, and 33.2% respectively.
What factors are driving the growth in India's residential real estate market?
The growth in India's residential real estate market is driven by strong demand, robust buyer confidence, and significant infrastructure development across key cities.
Related News Articles
Indian Real Estate Sector: Expectations from Union Budget 2024
The Indian real estate sector anticipates significant reforms in the upcoming budget, including GST reduction, lower interest rates, and industry status
Macrotech Developers Posts Best-Ever Q1 with ₹475.3 Crore Net Profit
The real estate firm achieved its highest-ever quarterly net profit, driven by strong pre-sales and robust embedded EBITDA margins.
State Street Leases Office Tower in Mumbai for New Global Capability Center
State Street Corporation, a leading global financial services provider, has leased an office tower from Brookfield Properties near Mumbai's BKC to set up its new Global Capability Center (GCC). This strategic move is expected to bolster the company's real
Why Real Estate Prices Skyrocket in India: A Detailed Analysis
Akshat Shrivastava, founder of Wisdom Hatch, shares valuable insights into the financial dynamics that are driving India's real estate market.
Mana Skanda The Right Life: A Sustainable, Family-Centered Lifestyle
India's real estate sector is witnessing a remarkable transformation with the rise of integrated townships and gated communities. One of the standout players in this domain is Mana Skanda The Right Life, a project that amalgamates sustainability and famil
Navigating the Insolvency Quandary: The Case of New India Co-operative Bank
Can the Insolvency and Bankruptcy Code (IBC) effectively handle the default cases of real estate companies? Is the current framework sufficient, or does it need a different approach? We delve into these questions through the lens of the New India Co-opera