Rise in Housing Price Index
Housing Price Index Rises in 13 Major Cities Shows Market Stability: The Housing Price Index (HPI) for 13 major Indian cities reached 132 in March 2025, marking an 8-point increase from 124 in March 2024. This data, released jointly by REA India (Housing.com) and the Indian School of Business (ISB), indicates a phase of price stabilization in the residential real estate sector.
Static GK fact: The Housing Price Index is a measure that tracks changes in residential property prices over time in specific urban markets.
Cities Covered in the Index
The HPI tracks price trends in Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune.
March 2025 HPI stood at 132, compared to 132 in February 2025 and 131 in January 2025, showing no monthly change but reflecting annual growth. This pattern suggests a plateau in prices after a strong upward trend in 2024.
Signs of Healthy Consolidation
Analysts view the current phase as a healthy consolidation. The previous quarters saw rapid price escalation, but now buyer sentiment has turned more cautious. Supply-side adjustments are underway, with fewer speculative investments and more focus on end-user demand.
Static GK fact: Price consolidation phases in real estate are essential to prevent market overheating and to maintain affordability.
Role of Economic Factors
The report attributes this stabilisation to recent interest rate cuts, rising household incomes, and changing lifestyle aspirations. These factors are creating a buying environment that favours long-term homeowners rather than short-term investors.
Static GK fact: The Reserve Bank of India influences home loan affordability through repo rate adjustments, which affect lending rates of commercial banks.
Impact of Global and Local Trends
Global economic uncertainties, coupled with slowdown in new project launches, have moderated price hikes. This pause allows developers to align supply with actual demand, ensuring a sustainable growth path.
Long-term fundamentals such as urbanisation, expansion of the middle class, and government policy support remain robust, making Indian residential real estate a resilient sector despite short-term adjustments.
Static Usthadian Current Affairs Table
Housing Price Index Rises in 13 Major Cities Shows Market Stability:
| Fact | Detail |
| March 2025 HPI | 132 |
| March 2024 HPI | 124 |
| Cities covered in HPI | Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, Pune |
| Monthly change from February 2025 | No change |
| Report released by | REA India (Housing.com) and Indian School of Business (ISB) |
| Key trend | Price stabilisation after 2024 surge |
| Economic driver | Interest rate cuts, rising incomes |
| Global factor | Economic headwinds |
| Market phase | Healthy consolidation |
| Key long-term support | Urbanisation, middle-class expansion, policy measures |
