India’s residential real estate market saw a 3.5% jump in Q2 2025, as robust buyer demand and infrastructure projects fuel growth, especially in affordable housing.
India’s residential real estate sector is on a steady upward trajectory, with the April–June 2025 quarter registering a 3.5% quarter-on-quarter (QoQ) rise in capital values. According to the latest Magicbricks PropIndex report, this growth is driven by strong buyer demand and ongoing infrastructure development, making it a dynamic period for architects, interior designers, and real estate professionals
Key Market Trends
- Demand Growth: The sector experienced a 4.6% QoQ increase in demand, indicating a vibrant and competitive market landscape.
- Stable Yearly Growth: Year-on-year (YoY) demand showed minimal change, with a modest 0.3% increase, suggesting a period of stabilization after the sharp post-pandemic rebound.
- Supply Slowdown: Notably, new housing supply hit its lowest point in five quarters, yet buyer interest remained strong, especially for affordable homes.
Affordable Housing in Focus
The affordable housing segment—properties priced below ₹30 lakh and 1BHK units—continues to see demand outstrip supply. This supply-demand gap is pushing prices upward and making compact homes a hot commodity, particularly in urban centers where space is at a premium.
Regional Preferences
- IT Hubs: Cities like Bengaluru, Hyderabad, Gurugram, and Noida are witnessing a clear preference for larger 2BHK and 3BHK homes, which account for nearly 80% of demand in these markets.
- Mumbai Metropolitan Region (MMR): Compact living remains the norm, with 1BHK and 2BHK units leading buyer interest.
Infrastructure Drives Price Growth
Cities undergoing major infrastructure upgrades are seeing the strongest price appreciation. For example:
- Pune: 39.4% YoY increase in capital values
- Greater Noida: 35.3% YoY increase
- Kolkata: 33.2% YoY increase
These gains are attributed to enhanced connectivity and major projects like the Navi Mumbai International Airport and the Mumbai Trans Harbour Link.
Expert Insights
Prasun Kumar, Chief Marketing Officer at Magicbricks, commented,
“The Q2 2025 PropIndex clearly indicates a maturing Indian real estate market, driven by genuine end-user demand and the transformative impact of infrastructure.”
What This Means for Industry Professionals
For architects, interior designers, and real estate consultants, these trends highlight several opportunities:
- Affordable housing and compact home design are in high demand, especially in metropolitan areas.
- Larger homes are gaining traction in IT hubs, suggesting a shift in lifestyle preferences among urban professionals.
- Infrastructure-driven growth is creating new hotspots for investment and development, especially in cities with major connectivity projects.
Looking Ahead
With a combination of solid end-user demand, strategic infrastructure investment, and policy support, the Indian residential real estate market is poised for continued growth. Industry professionals should keep a close eye on emerging trends in affordability, urban design, and regional development to stay ahead in this evolving landscape.
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