Article Today, Hyderabad:
The real estate market in the National Capital Region (NCR) recorded the highest growth in the country during the third quarter of 2025. Prices rose by 24 per cent compared with the same period last year. Average rates increased from Rs. 7,200 per square foot to Rs. 8,900. Analysts attribute the surge to strong demand in Gurugram and Noida, the presence of IT hubs, and the rising popularity of gated communities. However, the rapid escalation has made home ownership difficult for middle-class buyers.
Mumbai Retains Top Spot
Mumbai Metropolitan Region (MMR) continues to be the most expensive housing market in India. Average prices reached Rs. 17,230 per square foot, nearly double the current rate in NCR. The city recorded a 6 per cent rise compared with last year. Premium localities such as South Mumbai and Bandra have witnessed rising demand, driven by non-resident Indian interest and limited land availability. Experts note that such conditions are pushing property prices beyond the reach of most residents.
IT Hubs Under Pressure
In Bengaluru, average home prices rose by 10 per cent to Rs. 8,870 per square foot. Localities such as Whitefield and Sarjapur Road remain in high demand. Hyderabad saw an 8 per cent rise, with prices reaching Rs. 7,750 per square foot. Western corridors such as Gachibowli and Kokapet have become hotspots due to expanding IT infrastructure. Meanwhile, a government land auction in Raidurg Knowledge City drew national attention, with one acre sold at a record Rs. 177 crore. MSN Realty purchased 7.6 acres for Rs. 1,357 crore, while Prestige Group acquired 11 acres at Rs. 1,556.5 crore. In Chennai, prices rose by 5 per cent, reflecting steady demand from IT professionals.
Smaller Cities Record Gains
Pune and Kolkata also reported price increases. Pune registered a 4 per cent rise, with rates touching Rs. 7,935 per square foot. Demand from IT employees and students contributed to the growth. Kolkata witnessed a 6 per cent increase, with prices reaching Rs. 6,060, supported by infrastructure development such as metro and road projects. Nationally, the average home price has climbed to Rs. 9,105 per square foot.
Concerns on Affordability
Experts believe the demand for modern amenities and lifestyle features is a key driver of the sustained boom. They also note that the long-term outlook for the sector remains positive. However, without regulatory checks on pricing, rising costs could make home ownership unattainable for the middle class, leaving affordable housing as a distant goal.
