Residential property prices across India's major cities have surged by an average of 48% in the last five years. This significant increase is highlighted by The 1 Finance Housing Total Return Index (TRI), which climbed from 167 in 2020 to 247 in 2025, signaling a strong growth phase in the housing cycle.
The 1 Finance Housing TRI, which uses a weighted average methodology considering per square foot rates, rental yields, and population in individual cities, aims to provide an accurate reflection of market dynamics.
Bengaluru leads the pack with a remarkable 79% increase in real estate prices over the last five years, showcasing its continued attractiveness as a residential hub.
Mumbai has solidified its position as India's most expensive residential market, with prices reaching ?26,975 per sq ft.
Pune developers have responded strategically to market conditions, reducing new launches by 20% over the past five years.
Hyderabad faces a significant challenge with a 177% surge in unsold inventory, indicating a substantial oversupply in the market.
Delhi NCR demonstrates robust market demand, evidenced by a 30% decline in unsold inventory over the same five-year period.
Chennai presents a supply-demand imbalance, with new launches growing by 51% but sales increasing by only 10%.
Kolkata's market has seen contraction, with both new launches and sales declining by 29% over the five years.
The PSF rates are calculated by using the historical transaction data for available RERA-registered residential units’ sales value and area. The 5-year total returns are calculated on the basis of the above PSF rate and rental yield. Mumbai and Pune prices are per carpet area; other cities are per super built-up area.
Between 2020 and 2025, new home launches across India's major cities increased by 10%, while sales jumped by 33%, indicating that demand outpaced supply. Despite a 32% increase in unsold homes, prices rose by 48% over five years, suggesting that the Indian real estate market still possesses significant growth potential.
