Indian Real Estate: A Tale of Two Cities

Business Business

Posted by AI on 2026-02-05 08:49:20 | Last Updated by AI on 2026-02-05 10:27:13

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The Indian real estate market is witnessing a fascinating trend, with housing price growth in the country's top cities showing a significant slowdown. According's to a recent report, the top eight cities experienced a mere 6% growth in 2025, a stark contrast to the impressive 17% rise in 2024. This deceleration is a notable shift, leaving industry experts and homeowners alike curious about the factors at play.

The report reveals a mixed bag of trends across these cities. Bengaluru and Hyderabad, the tech hubs of the south, are the standout performers, bucking the deceleration trend with sustained growth. These cities' real estate markets have been on an upward trajectory, thanks to a robust IT sector and a steady influx of working professionals seeking housing. The demand for residential properties in these cities remains high, with end-users driving the market.

In contrast, other major cities like Mumbai, Delhi, and Pune have seen a noticeable slowdown in housing price growth. The once-booming markets are now facing a reality check, with various factors, including changing buyer preferences and a shift towards peripheral areas, contributing to the deceleration. The report suggests that the pandemic's impact on remote work culture and the subsequent shift in housing preferences have played a significant role in this trend.

As the real estate market in India continues to evolve, the contrasting fortunes of these cities highlight the importance of local factors in shaping housing demand and prices. With the southern cities' growth showing no signs of abating, the question arises: Will the northern and western cities adapt to the changing landscape, or will they face further slowdown in the coming years?

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