Price rise may moderate, but correction unlikely

End-users should be flexible on location and property specifications; investors should be prepared for extended holding periods

- SANJEEV SINHA

As 2025 draws toa close, India’s residential housing market is entering a phase of transition after several years of strong post-pandemic price growth.

While demand and infrastructure-led developments have kept prices elevated across major cities, particularly in the premium segment, affordability pressures are beginning to weigh upon buyers.

Price momentum moderated in 2025

While full-year data will not be available until the end of December, current trends suggest that residential price growth, which has been in double digits over the past few years, is moderating to single-digit levels in 2025.

According to Anarock Research, average prices in the top cities surged 21 per cent in 2024—from ₹7,080 per sq ft at 2023-end to ₹8,590 per sq ft at 2024-end. But this pace is expected to ease. While Delhi-NCR and Bengaluru may still record double-digit growth in 2025 due to higher premium and luxury supply, most other cities are likely to see single-digit increases.

High-end housing saw faster price growth

Anarock Research indicates that housing priced above ₹1.5 crore recorded the fastest price growth, with average prices across the top seven cities rising 40 per cent over the past three years—from about ₹14,530 per sq ft in 2022 to ₹20,300 per sq ft in 2025.