Residential Real Estate Market In India Continues To Grow, But At Moderate Pace
India’s real estate sector is not facing a downturn, but it is clearly entering a new phase—one marked by moderation rather than momentum. After a period of robust expansion in the wake of the pandemic, the residential market is now shifting gears.
According to a recent report from PropTiger, a property transaction and advisory firm, this transition signals a move toward long-term equilibrium. Though home prices continue to rise on an annual basis, the rate at which they’re climbing has eased in recent quarters. This deceleration pointed to a more cautious, consolidation-driven market environment, reported Business Standard.
This change is particularly visible in cities like Bengaluru and Hyderabad, where residential property values rose by 5 per cent in the first quarter of 2025, the data showed.
Bengaluru's average rate now stands at Rs 7,881 per square foot, while Hyderabad has reached Rs 7,412. However, in contrast, established metros such as Delhi NCR, Mumbai Metropolitan Region (MMR), Pune, and Chennai saw no change in their average prices over the same period, hinting at a levelling out in those markets.
Momentum Slows, Stability Emerges
Elsewhere, moderate upticks further reinforced the overall cooling trend. Ahmedabad posted a 3.8 per cent increase in Q1 2025, recovering from a prior dip, while Kolkata rebounded with a 4 per cent quarterly rise after a similar drop.
Pune’s prices remained flat at Rs 7,109 per square foot, a signal that the dramatic gains seen in 2023 are giving way to more consistent figures. Even Delhi NCR, which experienced double-digit growth through much of last year, reported no quarterly increase in Q1 2025, suggesting a broad-based pause across segments.
“The moderation in price growth observed over the past few quarters indicates a stabilising market dynamic, likely encouraging the return of end-users previously displaced by speculative activity,” said Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com. “This more measured trajectory is critical for sustaining end-user participation while maintaining the value built by investors and developers. In 2025, the market is expected to undergo further consolidation, reinforcing structural fundamentals and enabling steady, sustainable growth.”
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End-User Focus and Calibrated Supply Shape Outlook
This tempering of growth is not accidental. A number of structural forces are behind the change. One key reason is the increasing dominance of end-users over speculative investors. Buyers today are showing greater selectiveness, seeking long-term value rather than short-term gains. Developers, too, appear to be adapting. With unsold inventory stabilising and demand aligning more closely with actual usage patterns, future launches are expected to be more targeted.
"With prices plateauing in many cities and rising modestly in others, developers are likely to respond with more calibrated launches. This, in turn, will help maintain momentum while avoiding overheating in the sector," noted the PropTiger report.
As India’s housing market steps away from the breakneck pace of its post-pandemic resurgence, what emerges is a sector that is maturing—marked not by decline, but by a healthier and more sustainable rhythm.
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