Bengaluru leads India’s housing price surge with 79% jump in five years

India’s residential real estate market has witnessed a robust expansion over the last five years, with Bengaluru recording a staggering 79% increase in housing prices — the highest among major cities. This trend underscores the city’s sustained appeal as a key destination for homebuyers and investors.

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According to the 1 Finance Housing Total Return Index (TRI), which tracks market movements using per square foot (PSF) rates, rental yields, and population metrics, overall property prices across the country have surged by 48% between 2020 and 2025. The index rose from 167 to 247 in this period, reflecting a strong growth trajectory in India’s housing sector.

Mumbai retains its position as the costliest residential market, with average prices reaching ₹26,975 per sq ft. In Pune, developers have adopted a cautious stance, cutting new housing launches by 20% over five years. Meanwhile, Hyderabad is grappling with oversupply as unsold inventory has soared by 177%.

Delhi NCR stands out with a 30% decline in unsold homes, indicating healthy demand. In contrast, Chennai is experiencing a supply-demand mismatch, as new launches have outpaced sales.

Nationally, home sales have grown by 33%, while new launches rose by 10%, suggesting demand continues to exceed supply. Despite a rise in unsold inventory, the market is expected to shift toward steady, long-term growth, supported by infrastructure improvements and rising end-user demand.