Indian investors have long debated the wisdom of real estate investments versus stocks. While social media and financial influencers often tout stocks as the superior choice, recent data challenges this perspective. The 1 Finance Housing Total Return Index shows that residential properties in major Indian cities yielded a 15% total return from September 2024 to September 2025, surpassing many equity portfolios.
This surge, with the index climbing from 228 to 263, was primarily driven by price increases in various metropolitan areas. The study’s integrity is bolstered by its reliance on transactions from RERA-registered projects, reducing speculative influences. Notably, infrastructure development emerged as a key catalyst for the housing market’s performance, leading to substantial price hikes.
Cities like Bengaluru witnessed a 24% price growth in Greater Bengaluru due to infrastructure upgrades like the Namma Metro Phase 2 Yellow line. Similarly, Hyderabad saw a 12% rise in prices triggered by the Regional Ring Road, connecting areas like Pharma City. The Aqua Line Metro in Greater Mumbai boosted Central Suburbs’ prices by 13%.
These infrastructure projects have not only transformed commute times but also escalated rental demand and property values. The study also highlighted changing buyer preferences, shifting towards peripheral zones offering better access to job hubs and enhanced amenities. In the third quarter of 2025, sales value in major cities reached Rs 1.52 lakh crore, with Pune showing a significant unsold inventory of 2.69 lakh units.
Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, emphasized the importance of studying local factors over broad market trends. He highlighted the misrepresentation of real estate on social media, emphasizing the significance of understanding employment trends, infrastructure developments, and traffic patterns for informed investment decisions.
Despite over 11 lakh unsold homes in top cities, prices continued to rise due to improved infrastructure connecting residential zones with workplaces. The report advises investors to monitor infrastructure developments for potential investment opportunities. Real estate’s value is increasingly tied to tangible factors like metro lines, highways, and job prospects, rather than social media trends.
While regional performance may vary, the current trend underscores the transformative impact of infrastructure development on India’s housing market. By focusing on localized opportunities and tangible growth drivers, investors can leverage real estate as a strategic asset in their portfolios amid evolving market dynamics.