Housing Price Index Rises To 132 In March On Strong Residential Demand

The housing price index of 13 major Indian cities rose by eight points year-on-year to 132 in March 2025, driven by strong demand for residential properties. This is according to a joint report by REA India and the Indian School of Business (ISB).

The Housing Price Index (HPI), developed by REA India’s platform Housing.com and ISB, tracks residential price trends in Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune.

The index showed a moderate increase to 132 in March, compared to 124 in the same month last year. However, it remained stagnant compared to February 2025. The HPI stood at 131 in January.

“The Indian housing market is currently in a phase of healthy consolidation,” said Praveen Sharma, CEO of REA India (Housing.com). After a prolonged price rise, property values are showing signs of stabilisation.

Sharma said this stagnation reflects cautious buyer sentiment and adjustments in supply. He expects this trend to continue in the short term, which could bring more end-users back to the market.

Improved affordability, due to recent rate cuts, and strong demand linked to income growth and lifestyle changes are expected to support long-term housing market resilience, Sharma added.

Shekhar Tomar, Assistant Professor at ISB, said price stability points to a more balanced and mature housing sector. The report also noted that early 2025 saw price stability due to global headwinds, cautious buyers, and fewer new project launches.

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