India’s residential real estate market has delivered a standout performance over the past year, outpacing the stock market with a 15% total return. A surge in home prices across major cities, backed by improving infrastructure and rising end-user demand, has powered this growth.

Real estate vs stocks: Housing market outperforms stocks with 15% annual return, infrastructure push fuels surge

India’s Residential Real Estate Market Outperforms Equity Markets

The Indian residential real estate market has registered a robust 15% total return over the past year, surpassing equity markets, thanks to infrastructure upgrades across major cities.

Key Statistics:

Total Return Index (TRI): The TRI jumped from 228 in September 2024 to 263 in September 2025, marking one of the strongest annual performances in recent years.
Sales: Residential activity remained buoyant through Q3 2025, with sales touching Rs 1.52 lakh crore.
Average Rate in Greater Mumbai: Rs 33,762 per sq ft.
Unsold Inventory in Pune: 2,69,348 units.
Price Growth in Hyderabad: 12% jump in per sq ft prices to Rs 9,100 over the year.
Unsold Stock in Delhi NCR: Nearly 60% of unsold stock is more than five years old.

According to the 1 Finance Housing Total Return Index (TRI), the Indian residential real estate market is driven primarily by infrastructure upgrades across major cities.

Infrastructure the Real Driver:

The study finds a direct link between infrastructure expansion and real estate appreciation. Upcoming metro lines, logistics corridors, and upgraded arterial roads are reshaping demand patterns, particularly in peripheral regions previously considered too remote.

Bengaluru: The operationalisation of Namma Metro’s Phase 2 Yellow Line and the expected launch of the Blue Line by 2026 are transforming access to the IT corridor, resulting in a 24% price growth in Greater Bengaluru.
Hyderabad: The Regional Ring Road (RRR) project is creating a logistics backbone for Pharma City and opening up new residential hotbeds around the northern and southern belts of the city.
Greater Mumbai: The Aqua Line metro—from Aarey JVLR to Cuffe Parade—is already influencing prices, contributing to a 13% rise in central suburbs with rates touching ₹40,735 per sq ft.

Comment from Animesh Hardia:

Commenting on the data, Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, said real estate continues to be plagued by misconceptions.

“Real estate stands as the most misunderstood asset class. Its drivers of value are not well recognised because on-ground intelligence is missing. Social media often paints it inaccurately by comparing top companies with the entire real estate market. What needs study is employment, infrastructure, and traffic patterns. Without that, any view on real estate is half-baked,”

— Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance

Conclusion:

Even with unsold inventory exceeding 11 lakh units across the top eight cities, the market continues its upward trajectory. Analysts say that infrastructure-led development is bridging the gap between city centres and emerging suburbs, making previously overlooked areas more attractive for both homebuyers and investors.