After a period of rapid post-pandemic expansion, the market now appears to be entering a phase of cautious consolidation.
Mumbai: 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% |