Housing Prices See Sharp Jump Despite Demand Moderation

The All-India Housing Price Index (HPI) for 13 cities recorded a 14-point increase in June, despite signs of moderating demand in India’s second-largest employment-generating sector, according to a joint report by REA India and the Indian School of Business (ISB). The Index also posted an 8-point sequential rise, reflecting continued momentum in housing price growth.

The HPI tracks trends across major cities including Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune.

“Short-term pressures from trade uncertainties notwithstanding, India’s housing sector will continue to garner both attention and attraction as it gradually attains more maturity. While cost concerns do persist requiring government intervention, some positive changes are already visible. The Goods and Services Tax reforms, for instance, are expected to improve affordability, supporting demand, especially in the mid-segment, a category that must perform well for India to fulfil its housing-for-all dream,” said Praveen Sharma, CEO, Housing.com.

Shekhar Tomar, Assistant Professor of Economics and Public Policy at ISB, pointed out that in terms of pricing signs of relative stability were visible during the June quarter.

“India’s housing market showed resilience in Q2 2025, with demand particularly strong in the high-ticket 3BHK segment across NCR, Hyderabad and Bengaluru. While year-on-year prices remain higher, Q2 witnessed relative stability, suggesting a short-term moderation. With the 100-basis point repo rate cut in the first half of 2025 and inflation under control, we expect demand momentum, especially for larger homes in metropolitan regions, to continue driving the market in the coming quarters,” said Tomar.