India’s housing market is continuing to lose momentum, with recent data showing a further easing in monthly price growth and a more pronounced divergence between regional markets.

While annual growth remains strong across major tier-1 metros, conditions are clearly shifting as sticky inflation, global macroeconomic uncertainty, and evolving regulatory policies weigh on buyer sentiment.

At the same time, the underlying drivers of Indian real estate remain largely unchanged:

• Constrained Supply: High-quality inventory from reputed developers remains limited in prime micro-markets.
• Rising Inputs: Construction and labor costs are climbing again, forcing developers to maintain high base prices.
• Demographic Demand: Robust urban migration, rising disposable incomes, and a growing middle class continue to support long-term demand.

The Outlook: The result is a market that is slowing and consolidating in the short term, but still facing significant longer-term upward pressure on capital values.