RBI Reports 3.6% Annual Jump in House Price Index for Q1 — What It Means for Homebuyers

RBI’s latest quarterly report shows steady growth in housing prices across 18 Indian cities, signalling stability in the real estate market.

Can a 3.6 percent rise in home prices say more about an economy than an 8 percent jump? The Reserve Bank of India’s House Price Index (HPI) Report for the first quarter of FY 2025-26, released in October 2025, answers this question with quiet clarity. 

The report shows that residential property prices in India went up 3.6 percent year-on-year, a slower pace than 2024’s 7.6 percent rise. Yet, this modest increase speaks of market maturity, steadier buyer sentiment, and regional variations in property growth.

India House Price Index Quarterly Growth 2025 RBI Report

The India House Price Index Quarterly Growth 2025 RBI Report covers housing price movements across 18 cities. It is built on transaction data collected from state registration offices. This quarter’s report also marks the use of the new base year 2022-23, replacing the earlier base of 2010-11. The wider coverage and revised base help reflect the current real estate structure more accurately.

According to the RBI data, the quarter-on-quarter (QoQ) increase was 2.0 percent, showing that property values continued to edge upward despite tighter lending conditions and cautious buyers. Among the tracked cities, Nagpur, Chennai, and Chandigarh led the growth, while larger metros like Delhi and Mumbai saw more stable movements.
 

The report confirms that smaller and emerging cities are outperforming major metros in housing appreciation. The growth reflects both expanding infrastructure and improved access to affordable housing schemes.

This pattern also matches the RBI’s earlier view that housing demand is no longer concentrated in metros. Instead, it has shifted toward regional markets where middle-income groups are driving new purchases.

RBI Housing Market Trends First Quarter 2025 Analysis

The RBI Housing Market Trends First Quarter 2025 Analysis highlights how home prices are responding to broader economic changes. India’s steady interest rate policy and gradual recovery in construction activity have stabilised housing costs.

The central bank’s data shows that the all-India HPI growth slowed from 7.6 percent in Q1 FY 2024-25 to 3.6 percent in Q1 FY 2025-26, confirming that the surge seen after the pandemic years has cooled. This moderation benefits genuine buyers, while giving lenders room to manage credit risk better.
 

The table above shows a consistent pattern. Growth has slowed but stabilised. The RBI’s statement notes that the index represents transaction prices of residential properties registered across select cities, reflecting actual buyer activity rather than quoted market rates.

The Indian Real Estate Price Growth Rate Q1 RBI Data

The Indian Real Estate Price Growth Rate Q1 RBI Data is built using what economists call the “stratified median price” method. In simple terms, it divides transactions into different property segments by size, location, or type and calculates a median price for each. This reduces distortion caused by luxury or outlier properties.

The HPI measures how the price of a typical home changes over time. It acts as a barometer for financial stability, showing how real estate interacts with credit growth and consumer wealth. The RBI’s latest update revises both its data source and calculation base, giving policymakers a clearer snapshot of urban housing trends.
 

This broader data set allows the RBI to capture new property hubs like Pune, Thane, Ghaziabad, Noida, Thiruvananthapuram, and Nagpur. With housing finance now expanding into smaller cities, these inclusions help paint a more accurate national picture.

RBI House Price Index Annual Increase And Regional Trends: Link With Past News

In March 2025, a report titled “India’s Housing Prices Rise 7.7% Annually, Ranks 15th Globally in Q1” compared India’s housing performance with other countries. It showed India’s nominal price growth at 7.7 percent and real price growth at 4.2 percent. That report placed India among the steady housing markets globally.

The latest RBI House Price Index (HPI) shows a similar pattern. Domestic housing prices have grown at 3.6 percent in Q1 FY2025-26, which indicates moderation but continued stability.
 

The difference between global and RBI numbers is natural because the HPI is based on transaction-level domestic data. It gives a clearer and more accurate view for policy and planning.

As LoansJagat explained in “Real Estate Price Trends in 2025: Is It a Good Time to Invest?”, India’s housing market continues to show resilience, driven by real end-user demand rather than speculation. 

This link between earlier global reports and current RBI data shows that India’s real estate sector remains steady, supported by genuine buying and balanced policy measures.

Residential Property Price Inflation India Q1 RBI Update: How Banks And Government Responded

The Residential Property Price Inflation India Q1 RBI Update comes at a time when India’s economy is growing steadily and interest rates remain unchanged since February 2025. Compared to 2021-22, when property prices rose 6.2 percent amid post-pandemic liquidity support, today’s market shows restraint and maturity.

Both banks and the government have taken a more balanced stance. The RBI has maintained its focus on financial stability, while public housing initiatives under PM Awas Yojana (Urban) continue to target lower-income families. Housing credit growth remains healthy at around 13 percent in mid-2025, reflecting sustained end-user demand rather than speculative buying.
 

This comparison shows how the market has shifted from high growth to controlled expansion. The current data suggests that policymakers are more focused on sustainability than short-term spikes.

Conclusion 

The upcoming quarters may test the sustainability of this moderate growth. With construction input costs rising and lending rates steady, housing prices are expected to move gradually rather than sharply.

The RBI’s steady approach ensures that the housing market does not overheat again, as seen in 2022. Analysts expect Tier-II cities to remain strong performers through 2026 due to rapid infrastructure and job creation.

The RBI Housing Market Trends First Quarter 2025 Analysis sets the tone for how policymakers and builders read the real estate pulse in 2026. For now, India’s housing market looks poised for slow but steady progress, a sign that the industry has grown more measured, data-driven, and self-reliant.
 

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