Property Prices Surge in 48 Indian Cities in Q4 of FY25: NHB RESIDEX
The National Housing Bank's latest report reveals a significant rise in property prices across 48 out of 50 Indian cities in the fourth quarter of FY25. The 50-city Housing Price Index (HPI) shows a 7.5% annual increase, with key markets like Bengaluru and Mumbai leading the surge.
Property PricesNhb ResidexHousing Price IndexReal Estate MarketHome Loan Interest RatesReal EstateMay 24, 2025
This upward trend is a significant indicator of the robustness of the Indian real estate market. Out of the 50 cities covered, only Howrah and Thiruvananthapuram experienced a decline in property prices. The data underscores the growing demand for residential properties in major urban centers.
Eight key primary residential markets witnessed an appreciation in property prices during the January-March 2025 period. According to the HPI, prices in Ahmedabad saw a 6.1% rise, Bengaluru a 13.1% increase, Chennai a 9% rise, Delhi a 2.9% increase, Hyderabad a 4.8% rise, Kolkata a 9.6% increase, Mumbai a 5.9% rise, and Pune a 6.8% increase. These figures reflect the varying dynamics of the real estate market across different regions of the country.
On a quarter-on-quarter basis, the 50-city index registered an expansion of 1.9% in January-March 2025. This trend has been consistent since September 2021, indicating a steady improvement in the housing market. The consistent growth in property prices is attributed to several factors, including a stable economic environment, increased consumer confidence, and favorable government policies.
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, which is expected to boost the real estate sector by making home loans more affordable for potential buyers.
The moderation in interest rates is likely to further stimulate the housing market, making it more attractive for both first-time buyers and investors. The combination of rising property values and lower borrowing costs is expected to drive demand in the coming quarters, contributing to the overall health of the real estate market.
The National Housing Bank's HPI is a critical tool for tracking the health of the real estate sector and provides valuable insights for policymakers, developers, and investors. The data suggests that the Indian real estate market remains resilient and is poised for continued growth in the near future.
Frequently Asked Questions
What is the National Housing Bank (NHB) RESIDEX?
The National Housing Bank (NHB) RESIDEX is a housing price index that tracks the changes in property prices across 50 major cities in India. It is based on valuation prices of properties collected from banks and housing finance companies.
How many cities saw a rise in property prices in Q4 of FY25?
Forty-eight out of 50 cities saw an increase in property prices during the fourth quarter of FY25, according to the NHB RESIDEX.
What was the annual increase in the 50-city Housing Price Index (HPI) in Q4 of FY25?
The 50-city Housing Price Index (HPI) recorded an annual increase of 7.5% during the fourth quarter of 2024-25, compared to 5.1% in the same period last year.
Which cities experienced a decline in property prices in Q4 of FY25?
Howrah and Thiruvananthapuram were the only two cities that experienced a decline in property prices in Q4 of FY25.
How did the RBI's repo rate cut in February 2025 affect home loan interest rates?
The RBI's repo rate cut by 25 basis points in February 2025 led to a moderation in home loan interest rates, making home loans more affordable for potential buyers.
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