The National Housing Bank’s (NHB) RESIDEX report for the first quarter of FY26 highlights an overall upward movement in residential property prices across most Indian cities. Out of the 50 cities tracked, 45 recorded annual price appreciation while five reported declines, reflecting a broad-based but regionally varied trend in the housing sector.
The 50-city Housing Price Index (HPI), which is compiled using valuation prices of properties collected from banks and housing finance companies, showed an annual increase of 5.7 per cent during April–June 2025. This marked a slowdown compared with the 6.6 per cent rise recorded in the same quarter a year earlier. Despite the moderation, the index continues to indicate steady price expansion across the country’s major housing markets.
Among the cities that witnessed price growth, Bengaluru registered the highest annual increase at 9.1 per cent, suggesting sustained demand across both mid-income and premium housing categories. Chennai reported a 7 per cent rise, supported by the city’s expanding IT corridors and ongoing infrastructure projects.
Ahmedabad and Kolkata both recorded 6.8 per cent growth, pointing to consistent absorption in affordable and mid-income housing segments in these markets. Pune followed with a 6 per cent rise, reflecting activity among both end-user buyers and investors.
Mumbai registered an increase of 5.2 per cent, with stable absorption patterns across western and central suburban clusters. Hyderabad, which had previously seen rapid growth, witnessed a more moderate annual increase of 2.3 per cent during the period.
Delhi’s housing price index remained broadly unchanged compared to the same quarter of FY25, indicating stability but limited upward momentum. The stagnation suggests that the national capital’s market is relatively saturated, with fewer new demand drivers compared to other urban centres.
On the other hand, five cities reported annual price declines, pointing to localized pressures. Howrah experienced the sharpest contraction, with prices falling 6.1 per cent. Kochi registered a 5.5 per cent decline, while Thiruvananthapuram recorded a 4.8 per cent fall. Two other cities also saw price decreases, though of smaller magnitude. These movements highlight regional variations, where certain markets face weaker demand, oversupply, or relatively slower economic activity compared with other cities that continue to attract housing demand.
Looking at the quarter-on-quarter trend, the overall index for the 50 tracked cities rose 0.5 per cent between January–March and April–June 2025. This indicates sustained incremental growth, with the HPI showing a continuous upward trajectory since September 2021. The NHB noted that home loan interest rates were reduced by around 100 basis points in February 2025, which improved affordability and supported residential demand. This monetary easing appears to have provided additional stability to the market, reinforcing steady absorption in most urban centres.
The first quarter FY26 housing price trends point to a broadly stable to positive outlook for India’s residential property sector. With 45 of the 50 tracked cities registering price growth, momentum remains widely distributed across the country, even as some markets face downward adjustments. The continuous quarter-on-quarter increases since late 2021 reinforce the resilience of the housing market. As the financial year progresses, the combination of moderated growth, sustained affordability, and regional variations will continue to shape the trajectory of India’s urban housing markets.
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