India's Housing Market: A 48% Surge in 5 Years — Is the Peak Near?
India's housing market has seen a 48% increase in property prices over the past five years, driven by post-COVID demand and infrastructure growth. However, the question remains: Have we reached the peak of this real estate boom?
Real EstateHousing MarketProperty PricesInfrastructure GrowthPostcovid DemandReal Estate NewsJun 10, 2025
The index, which tracks real-time data from RERA-registered residential transactions, rose from 167 in 2020 to 247 in 2025. It reflects a strong post-COVID recovery phase driven by increased demand, infrastructure growth, and shifting buyer preferences.
City-wise snapshots: a mixed bag
Bengaluru has seen a blistering 79% price rise — the highest among metro cities.
Mumbai is now India’s costliest residential market with an average price of ₹26,975 per sq ft.
Hyderabad, despite booming development, faces a supply glut with unsold inventory up 177%.
Delhi NCR presents a contrasting picture with a 30% decline in unsold inventory, signaling high demand.
Chennai is seeing an imbalance — launches up 51% but sales growing just 10%.
Pune developers have scaled back new launches by 20% in response to market conditions.
Kolkata remains subdued with a 29% dip in both launches and sales.
Despite a 32% increase in unsold homes nationally, sales have grown 33% while new launches rose by only 10% between 2020 and 2025 — indicating stronger demand growth than supply.
Experts weigh in
Animesh Hardia, Senior VP – Quantitative Research at 1 Finance, notes that current market sentiment is split. “Existing homeowners are sitting on appreciated assets, but potential buyers are torn between FOMO and fear of buying at the top. It’s leading to impulsive, emotionally driven purchases,” he said. His advice: work with both real estate experts and financial advisors to make data-informed decisions — not ones based on hype or family pressure.
Has the peak arrived?
According to 1 Finance, prices are unlikely to repeat their post-COVID surge, but that doesn’t mean the rally is over. With rising infrastructure investments and better connectivity across Tier 1 cities and their peripheries, the market is transitioning from boom to balance.
Conclusion: Property prices may not have peaked yet — but going forward, expect steadier, more sustainable growth. For homebuyers, that means it’s not just about timing the market but aligning purchases with long-term personal and financial goals.
Frequently Asked Questions
What is the 1 Finance Housing Total Return Index?
The 1 Finance Housing Total Return Index is a metric that tracks real-time data from RERA-registered residential transactions, reflecting changes in property prices across major cities in India.
Which city has seen the highest property price increase?
Bengaluru has seen the highest property price increase of 79% over the past five years.
What factors are driving the surge in property prices?
The surge in property prices is driven by increased demand, infrastructure growth, and shifting buyer preferences following the post-COVID recovery phase.
What advice do experts give to potential buyers?
Experts advise working with real estate experts and financial advisors to make data-informed decisions, avoiding impulsive purchases based on hype or family pressure.
Is the real estate boom expected to continue?
While the post-COVID surge is unlikely to repeat, the market is expected to transition to a more balanced and sustainable growth phase with rising infrastructure investments and better connectivity.
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