India’s residential real estate segment has emerged as a strong performer, delivering around 15 percent returns over the past year, as per recent industry data. The performance highlights the sector’s resilience and steady growth amid improving economic conditions and consistent end-user demand across major Indian cities.
The growth is reflected in the Housing Total Return Index, which tracks transaction prices and rental yields from registered residential projects. Over the last twelve months, the index recorded a noticeable rise, indicating sustained price appreciation supported by stable demand in both urban and suburban housing markets.
Infrastructure development has played a significant role in driving housing demand. Ongoing metro rail projects, new highways, ring roads, and improved road connectivity have enhanced accessibility to residential hubs. These improvements have encouraged homebuyers to explore peripheral locations that offer better connectivity along with relatively affordable housing options.
Cities such as Bengaluru and Hyderabad have recorded notable residential price growth during the period. In Bengaluru, improved metro connectivity has strengthened demand in several residential corridors, while in Hyderabad, major road infrastructure projects have boosted buyer interest in emerging residential zones. Employment growth in technology and allied sectors has further supported housing absorption in these markets.
Mumbai continues to remain among the most expensive housing markets in the country, with residential prices holding firm despite an increase in new supply. Limited land availability and sustained end-user demand have helped maintain price stability. At the same time, sales value across leading Indian cities remained strong in the recent quarter, reflecting healthy buyer sentiment.
Unsold inventory has increased in certain markets, particularly where older projects continue to remain on the market. In Delhi-NCR, a significant share of unsold housing stock consists of projects that are more than five years old, highlighting buyer preference for newer developments offering modern layouts, better amenities, and improved compliance standards.
While higher supply levels in some micro-markets may moderate short-term price growth, the broader outlook for the housing segment remains stable. Continued infrastructure investment, rising urbanisation, and sustained end-user demand are expected to support long-term growth. Industry data indicates that residential real estate remains a competitive asset class, offering
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