Property Experts predicts solid growth in Housing Prices-2025

After gaining an average of 21% last year, India's primary housing market may see a small single-digit price increase in 2025 as developers are anticipated to increase new supply to keep up with demand, according to industry experts.

In order to allow banks to reduce interest rates on home loans, real estate developers and property experts anticipate that the RBI would lower the repo rate this year.

In order to increase supply and demand for the affordable housing market, which has lost its appeal in recent years, they also anticipate that the next budget will include some financial incentives.

For the first time since the epidemic, new home sales in seven major cities fell in 2024 as purchasers' appetites were sabotaged by a steep increase in housing prices and persistently high borrowing rates.

According to statistics from consultancy Anarock, sales volume decreased 4% in 2024 to 4, 59,650 units across seven main cities, while new supply decreased 7% to 4,12,520 units.

A high base effect, fewer launches, and price increases were some of the reasons for the first decline in sales after three years of spectacular growth after the COVID collapse.

In 2021, 2022, and 2023, housing sales increased by 71%, 54%, and 31%, respectively, following a 47% decrease in 2020.

Due to the COVID-19 pandemic, housing sales, which were 2, 61,355 units in 2019, fell to 1, 38,350 units the following year.

Regarding this, Realtors body NAREDCO’s National President G Hari Babu stated, "Looking ahead to 2025, the real estate sector is expected to experience continued growth. This momentum will be driven by a stable economic environment and supportive government initiatives."

Similarly, Realtors apex body CREDAI National President Boman Irani said, “Going into 2025, we are optimistic of government interventions to streamline certain policy roadblocks, especially for the affordable housing segment”.