Chennai Emerges as India’s Most Affordable Housing Market in FY 2024-25, Mumbai Remains the Most Expensive
Chennai has claimed the top spot as the most affordable housing destination in India, with an average property launch price of ₹7,989 per square foot, as per the latest PropEquity real estate market report for FY 2024-25.
Trailing just behind is Kolkata, where newly launched residential projects average ₹8,009 per square foot, making both cities attractive choices for budget-conscious homebuyers.
Mumbai, Delhi NCR Dominate the High-End Property Market
At the opposite end of the spectrum, Mumbai continues to be India’s costliest real estate market, with an average launch price hitting ₹34,026 per sq. ft. This places Mumbai significantly above other cities in terms of new project pricing.
Delhi-NCR takes second place in terms of premium pricing, recording an average new launch rate of ₹14,020 per sq. ft.
Following them are:
- Thane: ₹12,880 per sq. ft
- Navi Mumbai: ₹12,855 per sq. ft
- Pune: ₹10,832 per sq. ft
- Bengaluru: ₹9,852 per sq. ft
- Hyderabad: ₹8,306 per sq. ft
Average Property Prices Rise 9% Year-over-Year Across Top 9 Cities
The report reveals that the weighted average launch price across India’s top nine housing markets rose to ₹13,197 per sq. ft in FY 2024-25—up from ₹12,569 per sq. ft the previous year, marking a 9% annual increase.
City-Wise Price Growth: Kolkata Leads with 29% Increase
When it comes to year-over-year price appreciation, Kolkata witnessed the highest spike at 29%, followed by:
- Thane: 17%
- Bengaluru: 15%
- Pune: 10%
- Delhi-NCR: 5%
- Hyderabad: 5%
- Chennai: 4%
Surprisingly, housing prices dipped in Mumbai and Navi Mumbai, both seeing a 3% decline in FY 2024-25.
Two-Year Price Trends: Bengaluru Tops with 44% Appreciation
Over a two-year period (FY 2023 to FY 2025), Bengaluru has led the housing market with a 44% price appreciation, followed by:
- Kolkata: 29%
- Chennai: 25%
- Thane: 23%
- Delhi-NCR: 20%
- Pune: 18%
- Navi Mumbai: 13%
- Mumbai: 11%
- Hyderabad: 5%
“Housing prices have surged between 10-30% in cities like Bengaluru, Pune, Kolkata, and Thane. This rise, despite a dip in demand and supply, is primarily driven by escalating costs of land, construction materials, and labor,” said Samir Jasuja, CEO of PropEquity.
Q1 2025 Market Snapshot: Housing Sales and Supply Drop
In the January–March quarter of 2025:
- Housing sales dropped by 23% to 1,05,791 units
- New supply dipped by 34% to 80,774 units
These figures indicate a tightening market, where supply constraints may contribute to further upward pressure on prices, despite moderated buyer interest.