Indian Residential Market Enters Phase of Cautious
Consolidation After Period of Rapid Growth: PropTiger.com Report
New
Delhi, May 7th 2025: The
latest edition of Real Insight Residential: Q1 2025 by PropTiger.com,
the transaction and advisory services platform that is part of REA India (that
also owns Housing.com), reveals that while residential property prices
in India have continued to rise on a year-on-year basis, the pace of growth has
clearly moderated in recent quarters. After a period of rapid post-pandemic
expansion, the market now appears to be entering a phase of cautious
consolidation.
Market
Cooling, Not Crashing
The
report highlights that cities such as Bengaluru and Hyderabad continue to drive
growth, with both cities recording 5% quarterly increases in Q1 2025.
Bengaluru’s average prices rose to INR 7,881/sqft, while Hyderabad touched INR
7,412/sqft. In contrast, key mature markets such as Delhi NCR, MMR (Mumbai
Metropolitan Region), Pune and Chennai recorded no quarterly change in average
prices following an already flat previous quarter, suggesting a plateauing of
prices.
Other
markets like Ahmedabad and Kolkata also saw moderate increases of 3.8% and 4%
respectively in Q1 2025, reinforcing the trend of steady—though
decelerating—growth.
“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 Mr. 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.”
Signs of
Equilibrium Across Major Markets
The shift toward moderation
became particularly evident from Q3 2024 onwards. Between Q4 2024 and Q1 2025,
most cities either held steady or posted low single-digit gains. For example:
· Ahmedabad rebounded from a dip in
Q4 2024 to register a 4% QoQ growth.
· Kolkata also recovered after a 4%
decline last quarter, with a 4% rise.
· Pune remained flat at INR
7,109/sqft, reflecting stability after strong gains in 2023.
· Even in high-growth areas like
Delhi NCR, which saw double-digit gains through much of 2023, Q1 2025 showed 0%
quarterly growth, indicating a market that is pausing after a sharp upswing.
Macro
Drivers Behind Consolidation
The stabilisation phase can be
attributed to multiple factors:
· A more discerning buyer base
dominated by end-users
· Continued but rationalised
investor interest
· A supply pipeline adjusting to
real demand rather than speculative pushes
Outlook
The
report concludes that this cautious consolidation sets the stage for a more
sustainable growth path. 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.
|
Average Pricing (INR/Sqft) |
|||||||
|
City |
Q1 24 |
Q2 24 |
Q3 24 |
Q4 24 |
Q1 25 |
QoQ |
6 months |
|
Ahmedabad |
4,150 |
4,680 |
4,736 |
4,402 |
4,568 |
4% |
-4% |
|
Bengaluru |
6,919 |
6,911 |
7,512 |
7,536 |
7,881 |
5% |
5% |
|
Chennai |
6,086 |
7,155 |
7,179 |
7,173 |
7,173 |
0% |
0% |
|
Delhi NCR |
5,655 |
7,296 |
8,017 |
8,105 |
8,106 |
0% |
1% |
|
Hyderabad |
6,753 |
6,725 |
7,050 |
7,053 |
7,412 |
5% |
5% |
|
Kolkata |
5,045 |
5,384 |
5,844 |
5,633 |
5,839 |
4% |
0% |
|
MMR |
10,500 |
12,226 |
12,590 |
12,600 |
12,600 |
0% |
0% |
|
Pune |
6,000 |
6,528 |
6,953 |
7,108 |
7,109 |
0% |
2% |
