NHB RESIDEX Report: 96% of Cities See Property Price Growth in Q4 FY2

Property prices increased in 48 out of 50 Indian cities during the fourth quarter of the 2024-25 financial year, according to data released by the National Housing Bank (NHB) through its RESIDEX report. This trend points to a steady upward movement in residential real estate markets across most parts of the country.

The NHB RESIDEX, which tracks housing price movements in 50 cities, showed that only two cities—Howrah in West Bengal and Thiruvananthapuram in Kerala—recorded a decline in prices during the January-March 2025 period. All remaining cities experienced varying degrees of appreciation in property values.

The Housing Price Index (HPI), which is based on valuation data submitted by banks and housing finance companies, registered an annual increase of 7.5% during the fourth quarter, up from 5.1% recorded in the corresponding quarter of the previous financial year. This marks a continuation of the positive trend seen in the housing sector over the past few years.

Quarter-on-quarter, the index rose by 1.9% in the January-March period of 2025. Notably, the HPI has seen consistent quarter-on-quarter growth since September 2021, indicating a stable demand in the housing sector despite broader economic fluctuations.

Among major metropolitan markets, Bengaluru recorded the sharpest rise in housing prices with a 13.1% increase. It was followed by Kolkata at 9.6%, Chennai at 9%, Pune at 6.8%, Ahmedabad at 6.1%, Mumbai at 5.9%, Hyderabad at 4.8%, and Delhi at 2.9%. These eight cities are considered key indicators of national real estate trends due to their size and housing activity.

The report also highlighted a correlation between property price movements and monetary policy. In February 2025, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points. This was the first rate cut in five years and contributed to a corresponding reduction in home loan interest rates, also by 25 basis points. This easing in credit cost is expected to have supported buyer sentiment and activity in the housing market during the quarter.

The NHB RESIDEX data suggest that the housing market is responding to both macroeconomic signals and regional dynamics. The rise in prices may reflect growing demand, improved income stability, and a shift in consumer preference toward property investment in post-pandemic India.

Howrah and Thiruvananthapuram, the only two cities to register a decline, may have experienced localized factors such as oversupply, reduced demand, or regulatory developments affecting sentiment.

The overall positive movement in housing prices across cities aligns with the broader narrative of urbanization, infrastructure development, and growing aspirations for homeownership. Analysts suggest that while rising prices indicate strength in the real estate sector, affordability and supply-side constraints in certain pockets remain areas to monitor.