Housing prices in India remained stagnant for the third consecutive month in March 2025, marking a period of price moderation amid macroeconomic uncertainty and supply-side constraints. However, on an annual basis, the Housing Price Index (HPI) from Housing.com & ISB shows a moderate 8-point increase for FY25 (April 2024–March 2025), closing at 132. This reflects enduring buyer confidence in residential real estate—the most preferred asset class for Indian consumers.

 According to Housing Price Index (HPI) by Housing.com and Indian School of Business (IHB) , cities such as Delhi-NCR, Bengaluru and Hyderabad saw substantial year-over-year increases, while others showed more moderate or stabilising trends, signaling a maturing real estate cycle.

“The Indian housing market is currently in a phase of healthy consolidation. After an extended period of price escalation across major cities, we are now seeing a welcome stabilisation in values. This price stagnation, while reflective of cautious market sentiment and supply-side adjustments, is also laying the foundation for more sustainable growth. We expect this trend to continue in the near term, which could encourage more end-users—particularly those priced out during the recent bull run—to return to the market. At the same time, with improving affordability due to recent rate cuts and strong underlying demand drivers such as income growth and lifestyle aspirations, we remain optimistic about the long-term resilience of the housing sector,” said  Praveen Sharma, CEO, REA India (Housing.com)

 Shekhar Tomar, Assistant Professor of Economics and Public Policy, ISB said,” The current price stability points to a more mature and balanced housing market—moving beyond speculative surges and aligning with long-term fundamentals. Even amid global uncertainties, steady demand across cities reflects rising incomes, shifting lifestyle priorities, and growing end-user confidence. From Delhi-NCR to Bengaluru and Ahmedabad, this broad-based momentum highlights the economic resilience underpinning residential real estate in India”

The price stabilisation in early 2025 reflects an interplay of global headwinds, cautious buyer sentiment, and reduced launches. However, demand fundamentals remain strong, driven by income growth, evolving lifestyle aspirations, and the shift to hybrid work models. Notably, demand for larger homes is rising—evident from a 12-point jump in the HPI for 3BHK units in March. Meanwhile, 2BHK homes continue to be a steady preference among urban middle-class buyers, with the index at 132.

After a period of rapid appreciation, housing prices are expected to moderate further in the coming quarter due to high base effect and improving supply across markets. While price growth may slow, sales momentum is likely to remain positive—especially as market fundamentals stabilise and speculative activity wanes.