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India's residential property market has seen a sharp 48% rise over five years, according to the 1 Finance Housing Total Return Index, which measures pricing, rentals, and demographics. Bengaluru topped growth charts with a 79% increase, reaffirming its strong residential appeal. Mumbai remains India's most expensive market, with average rates nearing INR 26,975 per sq. ft. Delhi-NCR saw a 30% drop in unsold inventory, signalling healthy demand, while Hyderabad's stock ballooned by 177%, pointing to oversupply. Chennai reported a 51% rise in new launches but only 10% growth in sales, hinting at pressure on absorption. Kolkata saw both launches and sales decline by 29%. Across top metros, new launches rose 10% and sales jumped 33%, outpacing supply despite a 32% uptick in unsold inventory. The data highlights strong buyer sentiment and varying regional dynamics shaping India's maturing real estate market.
Residential property across India's leading metros has witnessed robust appreciation recently, with the national average climbing steeply. Official data from the 1 Finance Housing Total Return Index, which tracks price per square foot, rental yields, and demographic factors, shows the index jumping from 167 to 247 an impressive 48% surge in just five years. Advertisement
Leading this growth is Bengaluru, where housing values have soared by an exceptional 79%, reinforcing its position as a top-tier residential destination. Meanwhile, Mumbai continues to reign supreme in affordability, with per?square?foot rates near INR?26,975 underscoring its status as the costliest housing market in India.
Different metros are witnessing distinct trends in inventory and supply. Delhi-NCR has efficiently reduced unsold units by approximately 30%, signaling solid buyer appetite. In sharp contrast, Hyderabad's inventory has swelled up around 177% suggesting an oversupplied market. Chennai, experiencing a 51% rise in new launches but only a 10% uptick in sales, shows emerging supply-pressure issues. Kolkata, however, has seen both launches and sales dip by about 29%, reflecting slower demand.
Across all top metros, new project launches have increased by around 10% over five years, while sales surged nearly 33%, indicating that demand remains well ahead of supply. Despite a 32% rise in unsold stock, the sustained price rally up 48% speaks to underlying confidence in the real estate sector.
This housing market snapshot reveals metro-specific narratives that mirror every phase of a maturing real-estate cycle. Bengaluru's rapid price escalation reflects its enduring appeal, whereas metros like Delhi-NCR are stabilizing through inventory control. Others are grappling with imbalances either from oversupply or demand erosion. Overall, the sector demonstrates resilience amid fluctuating supply-demand scenarios, hinting at broader trends while underscoring the importance of localised dynamics as key drivers shaping India's evolving housing landscape.
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