The housing market across India’s major urban centres entered a phase of moderated price growth in 2025, with Delhi NCR recording a single-digit rise after an exceptionally sharp escalation the previous year. Industry data suggests this cooling marks a transition from speculative momentum to a more demand-aligned residential cycle, with implications for affordability, inventory planning, and sustainable urban expansion.
Across the country’s top eight cities, average residential price appreciation settled at around 6 percent during 2025, a steep slowdown from the double-digit surge witnessed a year earlier. In Delhi NCR, housing prices rose at a comparable pace, reflecting continued buyer interest but without the aggressive escalation that had characterised the market earlier. Urban economists view this recalibration as a stabilising development rather than a sign of stress. Southern technology-driven markets continued to outperform the national average. Bengaluru and Hyderabad recorded relatively stronger price growth, supported by steady employment creation, technology-led office expansion, and sustained end-user demand. In contrast, western and northern metros such as Mumbai, Pune, and Delhi NCR saw sharper moderation, partly due to affordability thresholds and higher base prices established during the post-pandemic rebound. The Delhi NCR housing market, however, remained structurally resilient. Analysts point to consistent absorption by end-users, particularly in well-connected corridors with access to metro rail, expressways, and emerging commercial hubs. Premium micro-markets within the region continued to attract high-income buyers, even as overall transaction volumes softened.
National residential sales declined over the year, reaching their lowest annual levels since 2022. Quarterly figures toward the end of 2025 also indicated slower buyer conversions, reflecting longer decision cycles amid elevated interest rates and cautious household spending. Despite this, inventory overhang across most cities remained within manageable limits, signalling that developers have largely aligned new launches with realistic demand expectations. New housing supply also moderated, falling to its lowest annual level since 2021. Urban planners interpret this as a corrective phase after years of aggressive construction, allowing cities to absorb existing stock while reassessing infrastructure capacity, mobility stress, and environmental impact. In Delhi NCR, restrained supply growth may help stabilise prices while supporting more planned and infrastructure-led development. From a broader urban perspective, the cooling of housing price growth offers both challenges and opportunities. While developers may face margin pressures, buyers benefit from improved affordability and choice. More importantly, a slower, steadier market creates space for cities to prioritise liveability, climate resilience, and equitable access to housing rather than unchecked expansion.
Looking ahead, experts expect housing price growth to remain range-bound in 2026, driven by end-user demand rather than speculative inflows. For Delhi NCR, the focus is likely to shift toward quality-led development, transit-oriented housing, and sustainable neighbourhood planning factors that may define long-term value more than short-term price acceleration.
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