After two years of steep escalation, Delhi NCR housing prices have entered a phase of moderation, rising 6% in 2025 compared to an extraordinary 49% jump the previous year. The cooling signals a shift from rapid post-pandemic appreciation to a more balanced market cycle, with implications for affordability, urban planning, and infrastructure-led expansion across the region.
Market data reviewed by Urban Acres show that price growth across India’s eight largest residential markets averaged 6% in 2025, sharply lower than the 17% expansion recorded in 2024. The recalibration suggests demand is stabilising after a surge fuelled by low interest rates, pent-up buying, and investor participation between 2022 and 2024. In Delhi-NCR, average residential values moved to roughly Rs 8,570 per sq ft, up from about Rs 8,105 per sq ft a year earlier. While the increase remains positive, developers and housing analysts indicate that end-user purchases rather than speculative buying are now driving transactions. Controlled new launches and tighter inventory management have also helped prevent oversupply. The moderation in Delhi NCR housing prices comes amid significant infrastructure upgrades, including expressway expansions, metro extensions, and transit-linked development corridors. Urban planners note that improved connectivity has redistributed demand toward peripheral micro-markets, easing pressure on traditional cores while supporting planned growth.
Across cities, trends were uneven. Bengaluru recorded the strongest annual increase at 13%, supported by expansion of Global Capability Centres and sustained hiring in the technology sector. Infrastructure development in north and east Bengaluru has strengthened residential absorption in emerging corridors. In contrast, Chennai’s pricing remained largely unchanged, reflecting steady but cautious demand. The Mumbai Metropolitan Region registered a 4% rise, while Pune saw marginal growth of 1%. Hyderabad and Ahmedabad posted 8% gains, and Kolkata recorded a 6% increase. Industry observers attribute the continued upward movement in most cities to higher land acquisition costs, rising construction input prices, and compliance requirements linked to environmental and building standards. Importantly, the market’s current phase suggests greater discipline. Real estate analysts highlight that stable pricing allows developers to focus on project delivery quality, energy efficiency, and regulatory compliance rather than rapid turnover. In the long term, this could encourage more sustainable urban expansion aligned with infrastructure capacity and environmental benchmarks. For homebuyers, slower price growth offers breathing space after years of sharp escalation. However, affordability remains a concern in premium corridors, particularly where transit-oriented development has pushed up land valuations.
Looking ahead to 2026, the residential sector appears poised for steady, rather than dramatic, expansion. With inventory levels under control and demand largely end-user driven, the coming year may favour measured growth, improved housing standards, and better alignment between urban infrastructure and residential supply.
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NCR housing market enters measured growth phase
