By Priya Raghuvanshi

Copyright timesnownews

Despite early signs of demand softening in India’s real estate sector, housing prices have continued to rise sharply, according to the latest All-India Housing Price Index (HPI). A collaborative initiative between REA India’s Housing.com and the Indian School of Business (ISB), the index recorded a 14-point annual rise in June and an 8-point jump quarter-on-quarter, underlining continued pricing momentum across key urban centres. The index, which tracks housing market trends across 13 major cities, reveals that demand for larger homes and luxury configurations remains resilient, driven by strong investor interest, urban migration, and evolving buyer preferences post-pandemic. NCR Leads the Pack With Record-Breaking Growth The National Capital Region (NCR) outpaced all other metros, with an impressive 42-point annual increase in HPI for Q2 2025. The surge reflects a mix of robust job creation, infrastructure upgrades, and rising demand for premium residential corridors. Cities like Noida, Greater Noida, and Gurugram saw particularly high traction across both 2BHK and 3BHK segments. “Short-term pressures from trade uncertainties notwithstanding, India’s housing sector will continue to garner both attention and attraction as it gradually attains more maturity,” said Praveen Sharma, CEO of Housing.com. Bengaluru and Hyderabad Maintain Upward Momentum With a 24-point year-on-year increase, Bengaluru retained its position as the second-best performing city. The tech-driven influx of professionals and sustained demand in prime zones such as Bengaluru South and Outer Ring Road are major contributors to this growth. Hyderabad, with a 20-point jump, continues to show strong multi-segment demand, especially in areas like ORR West and Hyderabad West. “India’s housing market showed resilience in Q2 2025, with demand particularly strong in the high-ticket 3BHK segment across NCR, Hyderabad and Bengaluru,” said Shekhar Tomar, Assistant Professor at ISB. Segment Trends Larger configurations, especially 3BHK and above, are now top choices in metro markets due to shifting post-pandemic lifestyle needs. However, in Tier-2 cities, the market still favours compact and affordable homes, reflecting local economic realities. While Q2 saw pricing stability in some areas, the overall market outlook for 2025-26 remains cautiously optimistic. The report highlights that “with the 100-basis point repo rate cut in the first half of 2025 and inflation under control, we expect demand momentum… to continue.” However, challenges remain. The report warns that US tariffs on Indian exports and affordability concerns may weigh on homebuyer sentiment in the coming quarters. That said, stable monetary policy and targeted government support are expected to drive long-term growth.