Magicbricks’ PropIndex report for April-June 2025 indicates a period of sustained, yet stabilizing growth in the Indian residential real estate market, with capital values experiencing a decent 3.5% quarter-on-quarter (QoQ) rise suggesting a market that is consolidating its gains. Demand also saw a robust 4.6% QoQ growth, underscoring a resilient and dynamic property landscape. Long term demand, however, remains subdued, with a 0.3% increase YoY.
The PropIndex April-June 2025 report delves into a nuanced market characterized by distinct regional variations and unwavering buyer confidence, predominantly fueled by aggressive infrastructure development across the country.
The report reflects steady end-user demand and investor confidence, with values now settling into a more stable growth pattern. The report identifies a clear divergence in buyer preferences: IT-driven cities like Bengaluru, Hyderabad, Gurugram, and Noida are seeing higher demand for spacious 2BHK and 3BHK homes (approx 80%), contributing to appreciation in larger unit sizes. Conversely, the Mumbai Metropolitan Region (MMR) remains driven by compact homes, with a strong preference for 1BHK and 2BHK units.
Major infrastructure projects are key drivers of appreciation, with Pune (39.4% YoY), Greater Noida (35.3% YoY), and Kolkata (33.2% YoY) demonstrating strong capital value appreciation due to enhanced connectivity. Projects like the Navi Mumbai International Airport and Mumbai Trans Harbour Link are fundamentally reshaping property values.
This quarter, the market observed a notable shift in supply dynamics, with the QoQ supply growth being subdued, marking its lowest increase in the past five quarters, following a period of consistent surge. Although overall demand remains consistent, a notable supply-demand imbalance is present within the affordable housing segment. Demand for units priced under ₹30 lakh and 1BHK configurations continues to exceed available inventory, contributing to competitive pricing in these categories. Premium properties, while seeing interest, have a more balanced supply-demand dynamic.
Commenting on the report, Prasun Kumar, Chief Marketing Officer, Magicbricks, said, “The Q2 2025 PropIndex clearly indicates a maturing Indian real estate market, driven by genuine end-user demand and the transformative impact of infrastructure. The significant capital value appreciation, particularly the 23.9% YoY growth, underscores the sector’s strength. While the overall growth is highly encouraging, the regional nuances highlight evolving buyer preferences and the ongoing need for developers to align supply with specific market demands, especially in the affordable housing segment. We anticipate this positive trajectory to continue, with infrastructure remaining a key growth engine”
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