Major Indian cities saw a 48% rise in home prices recently. The 1 Finance Housing Total Return Index (TRI) shows this growth. It jumped from 167 in 2020 to 247 in 2025. This index reflects a strong housing market period.
The 1 Finance Housing TRI uses a data method. It considers price per square foot. It also includes rental income and city populations. This ensures a true view of market trends.
Bengaluru saw the biggest price jump. Its real estate prices grew 79% in five years. Mumbai remains India’s priciest market. Prices there average ₹26,975 per square foot. Pune builders cut new projects by 20%. This response fits market demand. Hyderabad has a large oversupply. Unsold homes there rose 177%. Delhi NCR shows strong demand. Unsold stock dropped 30% in five years. Chennai has more new homes than buyers. Launches rose 51%. Sales only climbed 10%. Kolkata’s market shrunk. New projects and sales both fell 29%.
The index calculates price per square foot. This uses past sales data for RERA units. Total returns over five years use this data. They also include rental yields. Mumbai and Pune prices use carpet area. Other cities use super built-up area.
Delhi NCR buyers show strong interest. Unsold homes fell 30% over five years.
Developer supply and city demand vary. This table shows housing market data.
Past sales data of RERA units sets price per square foot. This same data calculates five-year returns.
Buyers face a choice: get in or pay too much.
Animesh Hardia of 1 Finance notes buyer concerns. Owners benefit from price increases. Potential buyers worry about missing out. They also fear buying at the peak. This fear causes quick, emotional buys.
Hardia stresses objective advice. Buyers need real estate and finance experts. These pros analyze data clearly. They help buyers decide wisely. This avoids market hype or family pressure.
Have prices gone too high?