Rising Property Prices in India's Top 8 Cities: A 2025 Analysis
In the first half of 2025, the residential property market in India witnessed considerable gains in major metropolitan areas. The top 8 cities have seen varying degrees of growth, driven by a combination of luxury launches, infrastructure improvements, and strong economic activity.
The weighted average percentage increase across these major cities was about 9% year-on-year. Notably, luxury homes are set to account for almost 49% of sales, with the premium segment driving significant value. There has been a recent shift in demand towards premium homes with better amenities, while the affordable segment is experiencing a decline in sales.
National Real Estate Overview – H1 2025
- Weighted Average Increase: About 9% YoY - Luxury Homes: Nearly 49% of sales - Key Trends: Shift towards premium homes with better amenities, decline in affordable segment sales
Property Prices Rates of Top 8 Cities
1. Delhi NCR
- Price Increase: 18% Year-on-Year Growth - Reasons: Luxury launches in Gurugram (Golf Course Extension Road, Dwarka Expressway), housing demand from high-net-worth individuals, major infrastructure upgrades. - Spotlight: Gurugram’s Golf Course Extension Road with the Dwarka Expressway. - Investors Takeaway: The luxury segment is expanding, and entry-level points are rising.
2. Bengaluru
- Annual Growth: 14% Year-on-Year Growth - Reasons: Strong IT sector growth, new tech parks, premium townships, and improved connectivity. - Key Areas of Focus: Northern Bengaluru area (Whitefield and Hebbal). - Investors Takeaway: Tech town dynamics and gated communities are driving values.
3. Chennai
- Annual Growth: 12% Year-on-Year Growth - Factors: Developments around manufacturing hubs, strong demand from IT and automotive sectors, and new infrastructure projects. - Key Focus Area: OMR corridor (IT hub), Perungudi. - Takeout for Investors: Demand is concentrated around IT micro-markets.
4. Hyderabad
- Annual Growth: 11% Year-on-Year Growth - Reasons: Developing IT corridors (HITEC City and Gachibowli area), healthcare hub development, and new infrastructure projects. - Key Area of Focus: HITEC City and financial district. - Investors Takeaway: Tech and life sciences are the primary market growth drivers.
5. Ahmedabad
- Annual Growth: 10% Year-on-Year Growth - Factors: Affordable premium housing, rapid urbanization, and strong investor interest from NRIs and corporates. - Key Focus Area: SG Highway and Satellite areas. - Takeout for Investors: Affordable luxury and a very strong long-term outlook.
6. Mumbai
- Growth: 8% Year-on-Year Growth - Reasons: Ongoing demand for prime residential homes, limited inventory, and increased construction costs. - What to Note: High-rise premium towers in South Mumbai and the western suburb area. - Investors Takeaway: Ongoing demand for luxury assets; Mumbai remains the most expensive city.
7. Pune
- Annual Growth: 7% Year-on-Year Growth - Factors: Overall launch activity slowed, leading to price corrections, but there is growth potential in peripheral micro-markets. - Key Focus Area: Hinjewadi, Baner micro-markets. - Takeout for Investors: Potential for action in new integrated tech townships.
8. Kolkata
- Annual Growth: 7% Year-on-Year Growth - Factors: Demand for affordable luxury and mid-segment homes, better infrastructure developments. - Key Focus Area: Rajarhat Newtown, Salt Lake areas. - Takeout for Investors: Long-term luxury living potential through new developments.
Comparative Table
| City | Price Rise H1 2025 (YoY %) | Main Reasons | Investment Note | |-------------|----------------------------|-------------------------------------------------|------------------------------------------| | Delhi NCR | 18% | Luxury launches, infrastructure growth | Strong luxury-led appreciation | | Bengaluru | 14% | IT sector growth, gated communities | Tech-driven demand growth | | Chennai | 12% | IT & manufacturing hubs | Focus on IT corridors | | Hyderabad | 11% | IT corridors, healthcare hub, infrastructure | Tech and life sciences growth | | Ahmedabad | 10% | Affordable premium housing, urbanization | Affordable luxury, strong long-term outlook| | Mumbai | 8% | Prime residential demand, limited inventory | Luxury asset demand, most expensive city | | Pune | 7% | Launch activity, price corrections, new townships | Potential in tech townships | | Kolkata | 7% | Affordable luxury, mid-segment homes | Long-term luxury living potential |
