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Housing Price Index for 13 Indian Cities Rises to 132, Signals Market Stabilization

India’s residential real estate market continues to show signs of stabilization, with the Housing Price Index (HPI) for 13 major cities rising by 8 points year-on-year to 132 in March 2025, according to a joint report by REA India (Housing.com) and the Indian School of Business (ISB).

While housing prices remained stagnant compared to February 2025, this modest annual rise indicates a consolidation phase after several quarters of rapid price appreciation.

Cities Covered and Index Insights

The HPI tracks pricing trends in 13 key urban markets: Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune.

March 2025 HPI: 132
March 2024 HPI: 124
February 2025 HPI: 132 (no monthly change)
January 2025 HPI: 131

This indicates a plateauing of prices in early 2025 following a strong upward trend in 2024.

Healthy Consolidation for Long-Term Growth

After a sustained period of price escalation across major cities, we are now seeing a welcome stabilisation. This phase reflects cautious sentiment and supply-side adjustments that will set the stage for sustainable, long-term growth. Recent interest rate cuts, combined with rising incomes and evolving lifestyle aspirations, are creating an environment conducive to end-user buying rather than speculation.

Global Headwinds and Local Adjustments

The report highlights that housing prices are now reflecting a mix of global economic headwinds, buyer caution, and a slowdown in new project launches. This environment has created a temporary lull, which analysts believe is beneficial for avoiding overheating in the market.

Despite the pause in price momentum, long-term fundamentals such as urbanization, middle-class expansion, and policy support remain strong.

Shivam

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