Property Prices Jump in 48 Indian Cities in Q4 FY25, Says NHB RESIDEX

India's housing market continues to grow, with prices going up in most cities during the last quarter of FY25. According to the NHB RESIDEX report, property values increased in 48 out of 50 cities between January and March 2025.

This steady rise in prices shows that demand for homes is still strong across the country—even as buyers carefully watch loan rates and new launches. In Chennai, areas like Pallavaram, which is home to new developments like Prestige Pallavaram Gardens, are seeing particular interest from both families and investors.

What the NHB RESIDEX Report Says

The NHB RESIDEX is India's official housing price index. It tracks how home prices are changing in different cities. In Q4 FY25, the report found:

1. 48 out of 50 cities saw a rise in housing prices.
2. Overall prices grew by 7.5% compared to the same time last year.
3. On a quarter-to-quarter basis, prices went up by 1.9%.
4. This marks the 14th quarter in a row where prices have gone up.

Only two cities—Howrah in West Bengal and Thiruvananthapuram in Kerala—saw a drop in prices.

How India's Major Cities Performed

Eight big metro cities showed growth, with most of them posting strong numbers:

1. Bengaluru: 13.1% (highest increase)
2. Kolkata: 9.6%
3. Chennai: 9.0%
4. Pune: 6.8%
5. Ahmedabad: 6.1%
6. Mumbai: 5.9%
7. Hyderabad: 4.8%
8. Delhi: 2.9%

Navi Mumbai stood out with a massive 45.8% price increase, showing sharp demand in that region.

In Chennai, rising interest is seen in southern neighborhoods with better roads and metro access. One such area is Pallavaram-Thuraipakkam Road, where new projects like Prestige Pallavaram Gardens are becoming popular for their smart location and good amenities.

What Is NHB RESIDEX?

The NHB RESIDEX is created by the National Housing Bank, which works under the Ministry of Finance. It uses data from banks and housing finance companies to understand how much housing prices have changed.

It helps:

1. Homebuyers know if it's the right time to buy.
2. Developers decide where and what to build.
3. Banks check property value before giving home loans.
4. Government officials track inflation and plan housing projects.

Why Are Property Prices Going Up?

Here are the main reasons prices increased across most cities in early 2025:

1. People Still Want to Buy Homes

Even with higher prices, many people want to own homes. After the pandemic, buyers are looking for homes with more space and better comfort.

2. Offices Are Reopening

More companies are asking employees to return to offices. This has created fresh demand for homes near tech parks and business centers.

3. Loan Rates Got a Bit Lower

In February 2025, the RBI cut the repo rate by 25 basis points. It was the first rate cut in 5 years. This helped banks reduce home loan interest rates slightly, making EMIs a bit more affordable.

4. Better Roads and Metro Lines

Cities are building more flyovers, metro lines, and expressways. This makes far-off places easier to reach and increases the value of homes in those areas.

For example, Pallavaram-Thuraipakkam Road in South Chennai is seeing strong growth due to new roads and metro plans. Projects like Prestige Pallavaram Gardens benefit from these changes.

5. NRI Buyers Are Returning

Non-Resident Indians (NRIs) are investing more in Indian properties—especially in luxury homes. Their return has pushed prices higher in premium areas.

6. Not Enough New Supply

In some parts of cities, there aren't enough new homes coming up. Rules around building height and space (FSI rules) make it hard to launch many new projects. With fewer homes available and more people wanting to buy, prices naturally go up.

7. Big Investors and Developers Are Confident

More money is coming into real estate from big investors and REITs (Real Estate Investment Trusts). Luxury housing, in particular, saw a 28% jump in sales in Q4 FY25.

Looking Ahead: What Can We Expect?

Even though home sales only grew 2% in major cities during this period (as per Knight Frank), prices are still going up steadily. That means buyers are willing to pay more for the right kind of home—especially in good locations with strong infrastructure.

In Chennai, demand is shifting toward suburbs with better air, clean surroundings, and future-ready amenities. One such example is Prestige Pallavaram Gardens in Pallavaram, which is now being seen as a smart long-term investment due to its growing value and location benefits.

Final Thoughts

The NHB RESIDEX report for Q4 FY25 shows that India's real estate market is strong and steady. Prices are rising across the board, and demand remains high in key cities.

Prestige Group Newlaunch Project is Prestige Pallavaram Gardens