Real Estate sector outperforms Stock Market in 2025: City-specific property market insights

New Delhi: The stock market seems to be lagging behind the real sector in 2025. The real estate market in major cities of the country has given returns of 15 percent to investors in a year. Whereas the stock market has seen a decline during that time. In fact, 1 Finance Housing Total Return Index report has come out. In this report, the returns of stock market and real estate have been compared from September 2024 to September 2025. Let us also tell you how much return the stock market and the real estate sector have given during this time.

According to the report, India's housing real estate market has outperformed equities during the last year. The real estate sector in major cities of the country has given returns of 15 percent to investors. Whereas the Nifty saw a decline of 3 percent during this period, according to the findings of the Finance Housing Total Return Index (TRI), the real estate figure, which was 228 in September 2024, increased to 263 in September 2025.

This means that this index has seen an increase of more than 15 percent. The report states that this boom in real estate was not only seen, but the construction of infrastructure is accelerating. Which has rapidly redesigned connectivity in tier-I cities and due to which both prices and demand have increased.

The report states that the increase in housing prices is directly related to infrastructure projects that reshape urban connectivity. As cities expand their business scope, new infrastructure is bridging the gap between development and reach. Due to which the surrounding areas are turning into major housing centers.

Bengaluru

The yellow line of Namma Metro Phase 2 is already operational, and the blue line will be operational by 2026, reducing congestion on the tech corridor. This forthcoming connectivity is one of the main reasons for the 24 percent growth in Greater Bengaluru, which connects commercial centers with affordable housing.

Hyderabad

With the completion of the construction of the North Phase and the construction of the South Phase commencing in early 2026, the Regional Ring Road will establish an important logistics route for the Pharma City. This improved connectivity has also highlighted the housing capacity of the area, which has led to an increase in demand for homes in the surrounding areas.

Greater Mumbai, Hyderabad

Aqua Line Metro, which connects Aarey JVLR to the Cuff Parade, is witnessing an increase in real estate prices in mid-suburban areas.

1 Finance Housing TRI is considered India's first unbiased, transaction-based housing return index, created using genuine RERA-registered transaction data. It brings out an overall picture of the housing market performance by combining pricing per square foot, rent receipts and population weight.

The sales value reached Rs 1.52 lakh crore in the third quarter. Greater Mumbai remains the most expensive market in India with Rs 33,762 per square foot. Unsold inventory in Pune is 2.69 lakh units, which indicates an increase in supply. Due to the Regional Ring Road (RRR), prices in Hyderabad have increased by 12 percent year-on-year to Rs 9,100 per square foot. In Delhi-NCR, 60 percent of the unsold stock is more than 5 years old, which shows that buyers like premium new launches more.

Senior Vice President of Quantitative Research in Finance Animesh Haradiya said that the pricing factors of real estate have not been accurately identified because there is a lack of ground information. Moreover, it is misrepresented on social media using inaccurate comparisons, such as comparing the returns of India's top 50 companies to the entire real estate market. This is wrong.

He said that just as the top 50 companies are fundamentally strong, there are some areas which have strong real estate fundamentals. Employment Trends, Commercial, Social and Public Infra and Traffic Path.