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Home Prices Rise 9% Across Top Indian Cities in FY24

real estate

Business Honor
17 April, 2025

Kolkata leads with a 29% surge; sales and new launches dip as buyers and developers turn cautious.

According to real estate research firm PropEquity, rates in the top nine Indian cities increased by 9% in the final fiscal year of FY 2024–2025. From FY 2023–2024 to FY 2024–2025, the median asking price increased from Rs 12,569 per square foot to Rs 13,197 per square foot.

Kolkata had the steepest price hike of 29%, followed by Thane (17%), Bengaluru (15%), and Pune (10%). Chennai had the lowest jump at 4%, while Hyderabad and Delhi-NCR both reported increases of 5%.Mumbai and Navi Mumbai bucked the trend and posted a price decline of 3% each.

Despite the price rise, the real estate market slowed down. The sales of housing fell by 23% to 1.05 lakh units during January-March 2025. New releases also saw a steep 34% drop to 80,774 units during that same time frame.

Samir Jasuja, PropEquity CEO, said that while demand and supply are low, high labor cost, land, and material costs drove prices higher. He added that while prices still rise, the pace has decelerated compared to past instances.

Within a period of two years (FY 2023 to 2025), Bengaluru was at the top of the cities with a 44% jump in housing prices. Second comes Kolkata with a 29% hike, then Chennai at 25%. With costs per sq. ft. of Rs 34,026, Mumbai is the most costly market, while the cheapest is Chennai at Rs 7,989 per sq. ft.

Among southern cities, fresh project prices were below Rs 10,000 per sq. ft. in Bengaluru, Chennai, and Hyderabad. Pune crossed that mark in FY25.

Even as the levels rose, new launches and slowing sales suggest that buyers are keeping safe, maybe because prices are at an all-time high or there is fear about affordability. Developers too are keeping safe with new launches, which suggests risk-averse and uncertain market sentiment.