Mumbai Leads India's Expensive Housing Market, but Which Big City is the Cheapest in 2025?
India's real estate sector has seen a significant boom post-COVID-19, with property prices in top cities increasing by an average of 48%. Mumbai has emerged as the most expensive housing market, while other cities face unique challenges and opportunities.
Real EstateProperty PricesHousing MarketIndiaMumbaiReal Estate MumbaiJun 16, 2025
Which city has the most expensive real estate market in India?
Property prices have seen the most significant increase in Bengaluru, rising by 79%. Mumbai, however, has taken the crown as India’s most expensive housing market, with property rates hitting Rs 26,975 per square foot.
Demand has surged so much in Delhi-NCR that unsold inventory has decreased by 30% over the past five years. In contrast, Pune has seen developers reduce new project launches by 20% in response to the market conditions.
Hyderabad presents a different scenario, where the supply has outpaced demand, leading to a 177% increase in unsold inventory. In Chennai, there is an imbalance: launches have increased by 51%, but sales have only grown by 10%. Kolkata is the only city where both launches and sales have declined by 29%.
Will home prices rise further across major cities in India?
The report indicates that between 2020 and 2025, the launches of new homes in major Indian cities increased by 10%, while sales grew by 33%. This suggests that demand has outpaced supply, leading to the possibility of further price increases. However, experts predict that the rapid post-COVID price hikes will not continue at the same pace. Instead, prices are expected to rise steadily in the coming years, driven by strong buyer demand and government-led infrastructure improvements.
Buyers are confused, take decisions thoughtfully, not emotionally
Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, shared his insights on the current market dynamics: “With our financial advisory clients, we’re seeing two very different stories. Clients who already own a property are benefiting from the recent price appreciation, but it’s the potential buyers who are facing a challenge. Many are worried about missing out while also being concerned about buying at peak prices, and this uncertainty is pushing them to make rash, emotional decisions.”
What these buyers really need is a combination of a real estate expert and a financial advisor—qualified professionals who can objectively analyze the numbers and help them make informed decisions. This includes assessing whether a purchase aligns with their life and financial situation, rather than succumbing to market hype or family pressure.
Summing up…
India’s housing market is moving towards stable and sustainable growth. The post-Covid boom will likely slow down, but demand will remain robust. New opportunities are emerging in real estate, particularly in major cities and their connected areas, thanks to improved connectivity and public infrastructure.
Frequently Asked Questions
Which city has seen the highest increase in property prices in India?
Bengaluru has seen the highest increase in property prices, rising by 79%.
Why has Mumbai become India's most expensive housing market?
Mumbai has become India's most expensive housing market due to high demand and limited supply, with property rates reaching Rs 26,975 per square foot.
What is the current trend in unsold inventory in Delhi-NCR?
Unsold inventory in Delhi-NCR has decreased by 30% over the past five years due to high demand.
How have new project launches been affected in Pune?
Developers in Pune have reduced new project launches by 20% in response to market conditions.
What is the expected trend in real estate prices in the coming years?
Real estate prices are expected to rise steadily in the coming years, driven by strong buyer demand and government-led infrastructure improvements.
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