Housing price index of 13 cities rises 8 points annually in March: Report

The housing price index of 13 major cities rose by eight points year-on-year to 132 during March this year on strong demand for residential properties, according to a report by REA India and Indian School of Business.

The Housing Price Index (HPI), a joint initiative between REA India's real estate classified platform Housing.com and the Indian School of Business (ISB), tracks price trends across 13 cities.

These are Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune.

The index shows a moderate 8-point increase to 132 in March this year, as against 124 in the same month last year. However, the index remained stagnant compared to February this year. In January 2025, the index was at 131 points.

"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," said Praveen Sharma, CEO, REA India (Housing.com).

He expected the trend to continue in the near term, which could encourage more end-users 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," Sharma said.

Shekhar Tomar, Assistant Professor of Economics and Public Policy at ISB, noted that price stability points to a more mature and balanced housing market.

The report noted that the price stabilisation in early 2025 reflects an interplay of global headwinds, cautious buyer sentiment, and reduced launches.