Chennai Emerges as Most Affordable Housing Market Among India’s Top Cities: PropEquity Report

New property launch prices in Chennai averaged at ₹7,989 per sq. ft in FY 2024-25, making it the most affordable housing market among India’s top nine cities, according to a recent report by real estate analytics firm PropEquity. Kolkata is not that far behind at ₹8,009 per sq ft average price.

Usage of the other end of the spectrum, Mumbai is still the country’s most expensive residential market, with an average new launch price of ₹34,026 per sq ft, while Delhi-NCR at ₹14,020 per sq ft in the second position.

Other cities in the list, in varying pricing placements, are Thane (₹12,880), Navi Mumbai (₹12,855), Pune (₹10,832), Bengaluru (₹9,852) and Hyderabad (₹8,306). After Mumbai and Delhi, Thane and Navi Mumbai are the costliest of the nine.

The report further points out that the weighted average launch price of these cities grew by 9 % over the period from senior FY 2023-24 ₹12,569 per sq ft to FY 2024-25 ₹13,197.

Thane (17%), Kolkata (29%) Bengaluru (15%), Pune (10%) Delhi-NCR and Hyderabad (5% each) had the highest annual growth in housing prices. Delhi posted a muted 4% growth, while Chennai clocked a mere 4% growth. Both Mumbai and Navi Mumbai were the only markets to unfurl a 3% price fall.

During the FY23-FY25 period of two years, housing prices increased by 18% on average, with Bengaluru leading the pack with 44% growth followed by Kolkata (29%), Chennai (25%), Thane (23%) and Delhi-NCR (20%).

But the market also experienced a slowdown in activity. In Q1 2025, housing sales decreased 23% to 1,05,791 units and new supply reduced 34% to 80,774 units.

“Prices have gone up owing to increased cost of inputs land, labour and construction material against low demand and supply,” said Samir Jasuja, Founder and CEO of PropEquity.

Although the speed of price growth is slowing, the Indian housing sector remains strong in the face of changing economic conditions.