Mumbai, Bengaluru have costliest properties in India, but this big city has cheapest housing market in 2025, its name is…
Cheapest Housing Market: After the Covid-19 era, the real estate market of India has witnessed a massive boom, with housing prices in major cities surging by an average of 48 percent. People are showing more interest in buying houses and lands but because of the limited number of properties the prices have skyrocketed. But among all the property hunting in major cities, there is another big Indian city where the prices of housing properties have decreased. Let’s know more.
The figures have been mentioned in the new report of 1 Finance Housing Total Return Index (TRI), based on RERA-registered property transaction data.
Most Expensive Real Estate Market In India
Known as India’s silicon city, Bengaluru has been witnessing a sudden increase in property prices by 79 percent. However, the country’s commercial capital Mumbai, has become the most costly housing market with Rs 26,975 per square feet.
Over the past five years, strong demand in the Delhi-NCR region has reduced unsold housing inventory by 30 percent. In response to market conditions, Pune developers have decreased new project launches by 20 percent.
On a contrary, in Hyderabad the demand is less and the supply is massive because of which unsold houses increased by 177 percent. In Chennai, new houses launch increased by 51 percent, but sales increased only by 10 percent.
However, Kolkata has become the only city is where both launches of housing property and sales declined by 29 percent.
Will Home Prices Rise Further?
A recent report reveals a surge in demand for new homes in major Indian cities between 2020 and 2025, outpacing supply growth. While new home launches increased by 10 percent, sales rose by 33 percent. This disparity suggests that real estate prices may continue to climb. In Pune, however, developers responded to market conditions by decreasing new project launches by 20 percent.
According to experts, this sudden post pandemic increase in demand will not be witnessed again. Prices of housing properties will increase at a steady pace in the coming years.
Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, observes contrasting experiences among his firm’s financial advisory clients regarding real estate. Current homeowners are profiting from rising property values, while prospective buyers struggle with the dilemma of potential price peaks and fear of missing out, leading to impulsive purchasing decisions.
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