Property Prices Surge in 48 Cities During Q4 of FY25: NHB RESIDEX
The National Housing Bank (NHB) reports a significant rise in property prices across 48 out of 50 cities in the fourth quarter of FY25. Only two cities, Howrah and Thiruvananthapuram, experienced a decline.
Real EstateProperty PricesNhb ResidexHousing MarketInterest RatesReal Estate NewsMay 24, 2025
Out of the 50 cities covered, Howrah and Thiruvananthapuram were the only two cities that experienced a decline in property prices, as per the latest residential housing price index NHB RESIDEX. The 50-city Housing Price Index (HPI), based on valuation prices of properties collected from banks and housing finance companies, recorded an annual increase of 7.5 per cent during the fourth quarter of 2024-25 compared to 5.1 per cent a year ago.
Eight key primary residential markets witnessed an appreciation in property prices during January-March 2025. According to the Housing Price Index published by the NHB, prices in Ahmedabad recorded a 6.1 per cent rise, Bengaluru (13.1 per cent), Chennai (9 per cent), Delhi (2.9 per cent), Hyderabad (4.8 per cent), Kolkata (9.6 per cent), Mumbai (5.9 per cent), and Pune (6.8 per cent).
On a quarter-on-quarter basis, the 50-city index registered an expansion of 1.9 per cent in January-March 2025. The index has shown an increasing trend on the Q-o-Q basis since September 2021, indicating a steady growth in the real estate sector.
Meanwhile, the interest rate on home loans moderated by 25 basis points in February 2025, when the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points, marking the first rate cut in 5 years. This reduction in interest rates is expected to further boost the real estate market by making home loans more affordable for potential buyers.
The National Housing Bank (NHB) is a leading financial institution in India that focuses on promoting housing finance and affordable housing. The NHB RESIDEX is a key tool used to track the movement of residential property prices across major cities in India, providing valuable insights for policymakers, developers, and investors in the real estate sector.
The data from the NHB RESIDEX highlights the resilience and growth of the Indian real estate market, despite various economic challenges. The increase in property prices in most cities is a positive sign for the industry, although it also underscores the need for continued efforts to ensure affordability and accessibility for all segments of the population.
Frequently Asked Questions
What is the NHB RESIDEX?
The NHB RESIDEX is the National Housing Bank's Residential Housing Price Index, which tracks the movement of residential property prices across major cities in India.
How many cities experienced a decline in property prices in Q4 of FY25?
Two cities, Howrah and Thiruvananthapuram, experienced a decline in property prices in Q4 of FY25.
What was the annual increase in property prices during the fourth quarter of 2024-25?
The 50-city Housing Price Index (HPI) recorded an annual increase of 7.5 per cent during the fourth quarter of 2024-25.
Which cities saw the highest increase in property prices?
Bengaluru saw the highest increase with 13.1 per cent, followed by Kolkata with 9.6 per cent and Chennai with 9 per cent.
What impact did the RBI's repo rate reduction have on home loans?
The RBI's reduction of the repo rate by 25 basis points in February 2025 led to a moderation in the interest rate on home loans, making home loans more affordable for potential buyers.
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