Mumbai, June 16, 2025 – Mumbai remains India’s most expensive housing market, with average prices reaching ₹26,975 per sq ft, according to the 1 Finance Housing Total Return Index. Housing prices in top Indian cities have increased by 48% over the last five years, driven by strong demand and limited new supply.
Key Price Trends
- Mumbai: ₹26,975/sq ft (costliest city)
- Delhi–NCR: ₹23,378/sq ft
- Bengaluru: ₹10,349/sq ft (highest growth of 79%)
Bengaluru has seen the fastest rise in property prices among metros, thanks to the booming tech sector and steady migration. Demand has outpaced supply, causing prices to climb steadily.
Market Growth and Inventory Levels
- Sales rose by 33% in five years.
- New launches increased by only 10%.
- Delhi–NCR saw a 30% drop in unsold homes.
- Hyderabad reported a 177% rise in unsold inventory, indicating overbuilding.
- Pune witnessed a 20% drop in new launches.
- Chennai saw launches rise 51%, but sales only grew 10%.
- Kolkata faced a 29% drop in both sales and new launches.
Outlook for 2026
Experts expect price growth to continue, but at a slower pace.
- Projected price increase: 6–7.5% per year in Delhi–NCR, Bengaluru, and Hyderabad.
- The RBI may cut interest rates by up to 50 basis points, which could improve home loan affordability.
Expert View
Animesh Hardia, Chief Business Officer at 1 Finance, noted that current homeowners are seeing strong returns, but new buyers often feel pressured to act quickly. He advised buyers to take a balanced approach and consult professionals before making major decisions.
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