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% |
About REA India Pte. Ltd.
REA India (previously known as Elara Technologies Pte. Ltd.) is a part of REA Group Ltd. of Australia (ASX: REA) (‘REA Group’) which is part of Newscorp, US. It is the country’s leading full stack real estate technology platform that owns Housing.com and PropTiger.com.
In December 2020, REA Group acquired a controlling stake in REA India.REA Group,headquartered in Melbourne, Australia,is a multinational digital advertising business specialising in property. Itoperates Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au and owns leading portals in Hong Kong (squarefoot.com.hk) and China (myfun.com). REA Group also holds a significant minority shareholding in Move, Inc., operator of realtor.com in the US, and the PropertyGuru Group, operator of leading property sites in Malaysia, Singapore, Thailand, Vietnam and Indonesia.
REA India is the only player in India that offers a full range of services in the real estate space, assisting consumers through their entire home seeking journey all the way from initial search and discovery to financing to the final step of transaction closure. It offers advertising and listings products to real estate developers, agents & home owners, exclusive sales and marketing solutions to builders, data and content services, and personalised search, virtual viewing, site visits, negotiations, home loans and post- sales services to consumers for both buying and renting. Additionally, company also offers a suite of allied services, including features like Pay on credit, movers & packers, lending services, online rent agreements, and an array of DIY services, catering to both customers and landlords.
REA India has a national presence with 24 offices across India with its corporate office located in Gurugram, Haryana.
Housing.com – Founded in 2012 and acquired by REA India (formerly known as Elara Technologies Pte. Ltd.) in 2017, Housing.com stands as India’s premier full-stack proptech platform catering to homeowners, home seekers, landlords, developers, and real estate brokers. Housing.com provides comprehensive listings for a wide range of properties, including new homes, resale homes, rentals, plots, commercial spaces, and co-living accommodations across India. Company is backed by robust research and analytics, offering a spectrum of real estate services encompassing advertising, marketing, sales solutions for real estate developers, personalised search & insights, virtual viewing, AR&VR content, home loans, end-to-end transaction services, and post-transaction support for both buyers and renters. Additionally, company offers a suite of online services through Housing Edge brand, including features like Pay on credit, movers & packers, lending services, online rent agreements, and an array of DIY services, catering to both customers and landlords. With a presence in 24 cities (tier I & II markets), Housing.com’ mission is to simplify the home buying, selling, and renting journey for its valued customers. REA India is a group company of global proptech leader, REA Group of Australia that is part of NewsCorp US.
PropTiger.com– Is among India’s leading digital real estate transaction and advisory services platform, offering a one-stop platform for buying residential real estate. Founded in 2011 with the goal to help people buy their dream homes, PropTiger.com leverages the power of information and the organisation’s deep-rooted understanding of the real estate sector to bring simplicity, transparency and trust in the home buying process. PropTiger.com helps home-buyers through the entire home-buying process through a mix of technology-enabled tools as well as on-ground support. The company offers researched information about various localities and properties and provides guidance on matters pertaining to legal paperwork and loan assistance to successfully fulfil a transaction.
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