India’s residential real estate sector is witnessing mixed trends in its major cities. Even as prices keep increasing, the rate and rhythm differ on account of local demand, supply, and investor sentiment.
1. Mumbai
- Present Prices: At the national leadership with about ₹27,000 per sq ft for prime residences.
- Luxury Market Boom: Luxury flat transactions setting new records and steady high-end demand have driven prices to all-time highs. Ultra-high-net-worth buyers remain unflinching.
- Global Context: You receive least space for dollar here—only a little over 1,000 sq ft for a $1 million property.
- Key Drivers: Limited land in prime locations, high cost of development, and consistent supply of high-net-worth buyers.
- Market Dynamics: While top-end income groups command the market, overall housing sales declined due to high prices. Premium demand is still strong, though.
2. Bengaluru
- Price Growth: The highest among metros—around a 79% rise over the past five years. Q1 FY25 saw a 13% year-on-year price increase.
- Affordability Advantage: $1 million buys nearly 4,000 sq ft in prime areas—significantly more than in Mumbai or Delhi.
- Supportive Infrastructure: New suburban rail, continued metro expansion, and expressway projects improve connectivity.
- Investor Appetite: Increasing launches, especially in premium and semi-peripheral areas, show strong confidence.
- Market Insight: Despite high prices, unsold stock increased, hinting at possible overextension. Overall housing sales dipped but remain relatively stable.
3. Pune
- New Launches: Strong activity—nearly 16% of total metro launches in H2 2024. Saw 40% growth last year.
- Moderate Price Rise: Around 6–10% annual or quarterly increases; home prices remain comparatively lower than Mumbai and Bengaluru.
- Investor Favorability: The cheapest metro, which sustains mid-income family purchasing demand.
- Peripheral Growth: Projects are shifting towards the periphery with better road and expressway connectivity.
Also read: Bengaluru’s Peenya Declared Special Investment Region (SIR) – Real Estate Prices Set to Explode?
4. Hyderabad
- Sales Slump: One of the deepest falls in Q1–2025, with a 49% fall in home sales.
- Price Uptick: Continued with modest annual increases (~4–5%).
- Challenges: Growing unsold inventory—177% increase over five years—indicates oversupply in some segments.
- Stabilizing Reality: Quarterly growth modest compared with other metros.
5. Delhi NCR
- Price Growth: One of the strongest Q1–2025 increases, approximately 18% year-on-year.
- Improving Affordability: More spacious units available than Mumbai, with stable demand from professionals and luxury consumers.
- Premium Launches: Heavy investment in luxury housing; mid-range demand moving upwards.
- Unsold Inventory: Reduced by ~30% over five years, indicating strong absorption.
6. Chennai – Emerging Strength
- Quarterly Growth: Approximately 9% in Q1 FY25.
- New Stock Increase: Approximately 51% in five years, although sales have increased by ~10% only, indicating slower uptake.
- Investor Attraction: Led by technology and manufacturing industries, Chennai is slowly witnessing investor interest.
7. Kolkata – Affordable with Recovery Signs
- Growth Rate: Price increased ~10% year-on-year and ~6% per annum.
- Affordable Segment Revival: Houses below ₹50 lakh are healing well, with Q1 2025 registering ~12% year-over-year improvement, supported by recent repo rate reductions.
- Sales Landscape: The city is still value-oriented, with a conservative but rising trend in affordable housing.
Key Market Drivers
- Supply Constraints: Land prices and regulatory caps in Mumbai and Bengaluru limit inventory, driving prices higher.
- Affordability Premium: Bangalore, Pune, and Kolkata are gaining as cost-effective options.
- Luxury Demand: Mumbai, Bengaluru, and Delhi markets are being driven by high-net-worth individuals, compensating for wider decelerations.
- Infrastructure Investment: Suburban rail, metro, and expressway projects are big drivers in Bengaluru, Pune, and Chennai.
- Macro Effects: Repo rate reductions are causing revived interest in budget segments, particularly in Kolkata.
Investor Sentiment Snapshot
- Demand Shift: There is a definitive skew towards premium and mid-housing segments. Budget housing is behind.
- Sales vs. Prices: While sales decelerate, Mumbai and Bengaluru continue to record value appreciation—pointing to the preponderance of investor and HNI activity.
- Buyer Caution: First-time buyers are choosing affordable or mid-town alternatives in the context of increasing EMIs and inflation.
- Future Outlook: Ongoing price appreciation (5–8% per annum) is anticipated, particularly where infrastructure upgrades and economic expansion favor housing demand.
Summary Table
| City | Recent Price Rise | Demand Drivers | Investor Sentiment |
| Mumbai | 5–6% annual | Luxury demand, land scarcity | Ultra-resilient among HNIs |
| Bengaluru | 13% YoY | Tech-driven growth, infrastructure | Confident, but inventory rising |
| Pune | 6–10% | Affordability, central launches | Stable, value-seeking |
| Hyderabad | 4–5% | Oversupply, slower absorption | Cautious, oversupply sensitive |
| Delhi NCR | ~18% YoY | Premium demand, metro/regional growth | Strong, premium-focused |
| Chennai | ~9% | Industrial growth, supply-driven | Patient, infrastructure-awaiting |
| Kolkata | 10%+ | Affordable housing revival | Conservative, finance-sensitive |
The Indian metro real estate scenario is changing. While luxury segments keep shooting up in Mumbai, Bengaluru, and Delhi, Pune and Kolkata present opportunities for value-hungry investors. Hyderabad and Chennai are consistent, influenced by supply-demand rebalancing. Forward-looking infrastructure investments are becoming the game-changer for future real estate value.
Written by Pydimarri Hema Harshini
