India’s residential real estate market continues to grow in 2025, but at a more moderate and stable pace. Cities like Bengaluru and Hyderabad witnessed a 5% rise in residential property values in the first quarter of the year, reflecting a shift toward equilibrium. Bengaluru’s average price rose to Rs 7,881 per sq. ft, while Hyderabad reached Rs 7,412. However, major metros like Delhi NCR, Mumbai, Pune, and Chennai showed no price change, pointing to market stabilisation.
According to a report by PropTiger, the market is no longer experiencing the post-pandemic surge it once did. Instead, it is transitioning into a phase of consolidation. While year-on-year prices are still rising, the pace has slowed in recent quarters. This indicates a cautious approach from both buyers and developers, driven by changing market dynamics and a growing focus on long-term sustainability.
Cities like Ahmedabad and Kolkata showed moderate quarterly gains of 3.8% and 4% respectively, recovering from earlier dips. In contrast, Pune remained flat at Rs 7,109 per sq. ft, showing how the dramatic increases seen in 2023 are giving way to steady, more predictable pricing. Even Delhi NCR, which previously experienced double-digit growth, reported no rise in Q1 2025, further underscoring the cooling trend across the country.
Experts believe this moderation will help restore end-user confidence. Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, stated that this price moderation supports sustained end-user participation while still preserving investor value. The market is expected to consolidate further in 2025, reinforcing core fundamentals and promoting sustainable growth across segments.
This evolving pattern reflects a strategic shift. End-users are now driving demand more than speculative investors. Buyers are focusing on long-term value, making more informed and cautious decisions. Developers, recognizing this change, are recalibrating their launch strategies. With unsold inventory levels stabilizing, upcoming projects are expected to be more focused and demand-driven.
As prices plateau in some cities and increase gradually in others, the market is adjusting in a way that supports long-term stability. The PropTiger report highlights that developers are likely to respond with more measured project launches, preventing oversupply and avoiding sudden price hikes.
In summary, India’s residential real estate sector is not declining—it is maturing. The current moderation represents a healthier, more stable market environment that balances growth with sustainability, driven by end-user needs and smart developer strategies.
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