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Housing prices across 13 major Indian cities registered a modest rise this past March, climbing eight points year-on-year to reach 132 on the Housing Price Index (HPI), according to a report by REA India and the Indian School of Business. Despite a slight rise from January, the index remained flat month-on-month in February and March, signalling a stabilizing market. The report attributes this trend to steady demand, cautious buyer sentiment, and fewer new launches, suggesting a maturing and more sustainable housing ecosystem.
The residential real estate market across 13 prominent Indian cities has seen housing prices rise steadily, albeit moderately, over the past year, driven by continued demand and restrained supply. A joint report by REA India (parent company of Housing.com) and the Indian School of Business revealed that the Housing Price Index (HPI) climbed to 132 in March, marking an eight-point jump from 124 in the same month last year. Advertisement
The HPI, an analytical tool tracking property price trends-covers the cities of Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune.
While the index showed steady yearly growth, the report highlighted that prices plateaued over the past couple of months. In January, the index stood at 131 and remained unchanged through February, indicating price consolidation following a sustained phase of increases in 2024.
Praveen Sharma, CEO of REA India, noted that the market is currently undergoing a "healthy consolidation" phase. He observed that after an extended period of rising property rates, values have now stabilised. This pause in escalation is being shaped by a cautious buyer outlook and adjustments in supply, paving the way for more sustainable long-term growth.
Sharma also expressed confidence in future demand, citing factors such as improved affordability following recent interest rate cuts, income growth, and rising aspirations among homebuyers. These elements, he said, are likely to draw more serious end-users back into the housing market.
Shekhar Tomar, Assistant Professor of Economics and Public Policy at ISB, added that the current price trends reflect a more mature and balanced housing sector. He emphasised that the market's evolution is influenced by both global economic uncertainties and a calibrated approach from developers in launching new projects.
The report also highlighted that the early months of 2025 showed fewer new property launches, which, along with tempered buyer activity and international market volatility, has contributed to the overall price stability.
Source PTI
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