Residential Property Prices Rise in 48 Cities, NHB Q4 FY25 Data Shows

Residential Property Prices Surge in 48 Indian Cities, NHB Q4 FY25 Report Shows

India’s residential real estate market is riding a powerful wave of growth, as revealed by the latest RESIDEX report from the National Housing Bank (NHB). In the fourth quarter of FY25, property prices increased in 48 out of 50 tracked cities, underscoring the sector’s resilience and broad-based optimism. Only Howrah and Thiruvananthapuram bucked the trend, recording declines in property values.

A Year of Robust and Widespread Growth

The Housing Price Index (HPI), which aggregates residential property valuation data from banks and housing finance companies, posted a strong year-on-year increase of 7.5% in Q4 FY25—up from 5.1% during the same period last year. This marks the highest annual growth in recent years, reflecting the sustained demand for homes across India’s urban landscape.

On a quarter-on-quarter basis, the 50-city composite index expanded by 1.9% during January–March 2025, continuing a steady upward trajectory that has been in place since September 2021. This consistent growth signals a healthy and maturing housing market, buoyed by both end-user demand and investor confidence.

Metros and Tier-II Cities: Growth Across the Board

• Bengaluru: 13.1% (the highest among metros)
• Kolkata: 9.6%
• Chennai: 9.0%
• Pune: 6.8%
• Ahmedabad: 6.1%
• Mumbai: 5.9%
• Hyderabad: 4.8%
• Delhi: 2.9%

The index also revealed significant variation in price movements across the 50 cities. Notably, Navi Mumbai emerged as the fastest-growing city, recording a staggering 45.8% annual increase in residential prices. In contrast, Howrah saw a 3.5% decline, while Thiruvananthapuram also posted a drop, highlighting the diversity of local market dynamics.

What’s Driving the Boom?

• Interest Rate Relief: In February 2025, the Reserve Bank of India (RBI) cut the repo rate by 25 basis points—the first such reduction in five years. This led to a moderation in home loan interest rates, making borrowing cheaper and spurring homebuyer activity.
• Urbanization and Infrastructure: Ongoing infrastructure upgrades in major cities have enhanced connectivity and livability, further boosting demand for residential property.
• Mid-Income Segment Demand: There has been a steady rise in demand from mid-income homebuyers, supporting both primary and secondary housing markets.

NHB RESIDEX: Building Transparency and Trust

The NHB RESIDEX is India’s first official housing price index, designed to track changes in housing prices at neighborhood, city, and national levels. By providing quarterly updates and expanding its coverage to 50 cities—including 18 state/UT capitals and 37 smart cities—the index helps policymakers, banks, developers, and homebuyers make informed decisions. It also brings greater transparency and structure to India’s real estate markets, fostering trust and encouraging wider participation.

Looking Ahead: Sustained Momentum Expected

With the property market showing consistent quarter-on-quarter growth, the outlook for India’s residential sector remains positive. The combination of lower interest rates, urban development, and demographic demand is expected to keep the housing market buoyant in the coming quarters.