In 8 cities, home prices went up by up to 11% from January to March, according to CREDAI.

In the first quarter of 2025, India's real estate market registered a sharp surge as average housing prices in eight major cities went up between 9 and 11 percent year-on-year (YoY). It was reported by the Confederation of Real Estate Developers' Associations of India (CREDAI) that a FAC team in partnership with Colliers, the real estate consulting firm, and Liases Foras, the data analytics firm, brought this advance to light through their combined research on this market.

Delhi-NCR Leading the Surge

In terms of cities, Delhi-NCR (National Capital Region) was the place where that significant appreciation took place; residential properties there jumped by an average 32 percent YoY. This extremely high rate is due to the vigorous infrastructure development and the increasing need for luxury homes.

Dwarka Expressway and Golf Course Extension/Sohna Road, gained more than 50% annually and established themselves as primary residential areas. Prices in Delhi-NCR have gone up by an average of 75% since COVID pandemic in 2020, as large households desire more space with comfort.

Bengaluru's Robust Growth

In Bengaluru, the YoY rate went as high as 24%. This can be attributed to the positive effects of the fast developing IT sector and regular inflow of professionals which boosted the requirement of housing. More due to the fact that the preference is for luxury, bigger real estate properties, prices could go up.

Pan-India Trends

In India, the increase in property prices were not only confined to Delhi-NCR and Bengaluru only. Gross increases in property rates were also reported in other major cities including the Municipal Corporation of Pune, Hyderabad municipality, Chennai Corporation, Kolkata Municipal Corporation and areas of cities in MMR.

The average housing price across the top eight cities equaled or even surpassed Rs 11,000 per square foot in Q3 2024 as witnessed in seven of the previous four quarters since 2021.

Factors Driving the Price Escalation

The following factors that are responsible for this new surge in house prices:

• Robust Demand: Consumer choice has become more sensitive towards owning their own homes due to the COVID-19 pandemic. Stability and security are the factors that are pushing this change from the rental and letting to the home ownership.

• Construction Infrastructure: Development of expressways, expansion of metros, and other improvement projects encourage the developments of secondary cities, and make them more appealing to property developers.

• Luxury Housing Demand: Such estates are becoming more popular, as the rise in property prices indicates the increased demand for high-end, and ultra-luxury submarkets.

• Positive Optimism in the Market: Strong performance of financial services provided primarily by the informal sector as well as economic variables has ensured the continued confidence of buyers, recruiting further real estate investment volumes.

Industry Perspectives

The President of CREDAI National, Boman Rustom Irani remarked, "The ongoing rise in housing prices is another proof of positive homebuyer sentiments and a very good residential real estate market." His statement reflects the environment of positivity in India’s real estate industry and the anticipation of continuous growth over a few more quarters.