Property Prices Surge in 48 Cities in Q4 FY25: NHB RESIDEX
Property prices witnessed a significant rise in 48 out of 50 cities in the fourth quarter of FY25, according to the latest NHB RESIDEX report. The 50-city Housing Price Index (HPI) recorded an annual increase of 7.5%, reflecting a robust real estate market.
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Out of the 50 cities covered, only two cities, Howrah and Thiruvananthapuram, registered a decline in property prices. The NHB RESIDEX report highlights the robust growth in the real estate sector, driven by various factors such as economic stability, low-interest rates, and increased demand for housing.
Eight key primary residential markets saw a notable appreciation in property prices during January-March 2025. Ahmedabad recorded a 6.1% rise, Bengaluru saw a 13.1% increase, Chennai experienced a 9% rise, Delhi witnessed a 2.9% increase, Hyderabad saw a 4.8% rise, Kolkata experienced a 9.6% increase, Mumbai saw a 5.9% rise, and Pune recorded a 6.8% increase.
On a quarter-on-quarter basis, the 50-city index registered an expansion of 1.9% in January-March 2025. The index has shown a consistent increasing trend on a Q-o-Q basis since September 2021, indicating a steady recovery and growth in the housing market.
Meanwhile, the interest rate on home loans moderated by 25 basis points in February 2025, following the Reserve Bank of India's (RBI) decision to reduce the repo rate by 25 basis points. This was the first rate cut in five years, aimed at boosting economic activity and making home loans more affordable for buyers.
The National Housing Bank (NHB) plays a crucial role in the Indian housing finance sector by providing refinance to housing finance companies and banks. The NHB RESIDEX is a reliable indicator of housing price trends in major cities across India, helping policymakers, investors, and homebuyers make informed decisions.
The positive trends in property prices and the reduction in home loan interest rates are expected to further stimulate the real estate market, making it an attractive investment option for both first-time buyers and seasoned investors. However, it is important for stakeholders to remain cautious and monitor market conditions to ensure sustainable growth in the sector.
Frequently Asked Questions
What is NHB RESIDEX?
NHB RESIDEX is the Residential Housing Price Index published by the National Housing Bank (NHB). It provides a comprehensive overview of housing price trends in major cities across India, based on valuation prices of properties collected from banks and housing finance companies.
How many cities saw an increase in property prices in Q4 FY25?
48 out of 50 cities saw an increase in property prices in Q4 FY25, according to the NHB RESIDEX report.
What was the annual increase in the 50-city Housing Price Index (HPI) in Q4 FY25?
The 50-city Housing Price Index (HPI) recorded an annual increase of 7.5% in Q4 FY25, compared to 5.1% in the same period last year.
Which cities did not see an increase in property prices?
Howrah and Thiruvananthapuram were the only two cities that registered a decline in property prices in Q4 FY25.
How did the RBI's repo rate cut in February 2025 affect home loans?
The RBI's repo rate cut of 25 basis points in February 2025 led to a reduction in home loan interest rates, making home loans more affordable for buyers.
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