Housing Price Index Hits 132 in March 2025: Market Stabilization in Sight

India’s residential real estate sector appears to be entering a phase of stabilization. In March 2025, the Housing Price Index (HPI) across 13 major Indian cities reached 132, up eight points from the same month last year, signaling a moderate yet meaningful annual growth. Notably, the index remained unchanged from February 2025, reflecting a plateau after months of price escalation.

According to REA India (Housing.com), this indicates a “healthy consolidation” in the market, driven by cautious buyer sentiment and adjustments in supply, factors that lay the groundwork for more sustainable long-term growth. Demand is expected to stay resilient, thanks to improved affordability following recent rate cuts, rising income levels and evolving lifestyle aspirations.

Shekhar Tomar of ISB adds that such price stabilization is a hallmark of a mature and balanced real estate ecosystem. Moreover, global economic headwinds and a slowdown in new launches are contributing to this cooling phase, likely preventing overheating in the market.