Housing Price Index Climbs 8 Points in March FY25
India’s Housing Price Index (HPI) jumped to 132 in March 2025, reflecting an eight-point year-on-year rise across 13 major cities, according to the latest REA India–Indian School of Business report. Notably, Delhi NCR topped the list with a 42-point surge, driven by robust investor interest in premium corridors. Bengaluru followed closely with a 29-point increase, though signs suggest its market may be stabilizing.
Bengaluru: A Shift Toward Compact Homes
Bengaluru’s real estate landscape is witnessing a marked shift in buyer preferences, with a noteworthy rise in demand for 1BHK units. Amid rising property prices, buyers are gravitating toward more affordable yet functional homes. Meanwhile, while demand for 3BHK units surged by 12 points in March, the ever-popular 2BHK segment remained steady at an HPI of 132, maintaining its appeal among middle-class purchasers.
Industry Insights: Market Moving Toward Sustainable Growth
RERA India’s CEO, Praveen Sharma, describes the current trend as a phase of “healthy consolidation.” He notes that a brief period of price stagnation follows a long bull run and lays the groundwork for sustainable, long-term growth. Meanwhile, Shekhar Tomar of ISB says this stability reflects a maturing housing cycle marked by rising incomes, lifestyle changes, and a shift toward end-user purchases—factors fueling steady demand from Delhi NCR to Bengaluru and beyond.
Affordability and Infrastructure: Key Drivers in Bengaluru
Bengaluru’s 29-point price rise is supported by improving affordability, rate cuts, and lifestyle-driven demand. The rise of hybrid and remote work has expanded buyers’ focus beyond city center hotspots. Moreover, advancements in infrastructure—especially metro expansions and expressways—are enhancing connectivity and making peripheral neighbourhoods more attractive to homebuyers. These changes are widening affordable housing access for tech professionals and end-users alike.
Also Read:Bengaluru’s Yellow Line Metro Opens Access to Affordable Housing Markets for Tech Professionals
