Not only from gold and silver but the stock market was also seen lagging behind the real sector in terms of earning. The real estate market in major cities of the country has given a return of 15 percent to investors in one year. Whereas there has been a decline in the stock market during that period. In fact, a report of 1 Finance Housing Total Return Index 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 returns the stock market and real estate sector have given during this period.
Real estate beats stock market
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 gave a return of 15 percent to investors. Whereas a decline of 3 percent was seen in Nifty during this period. 1 According to the findings of Finance Housing Total Return Index (TRI), the real estate figure which was seen at 228 in September 2024, increased to 263 in September 2025.
This means that this index has seen a rise of more than 15 percent. It has been said in the report that this boom in real estate was not seen just like that but there is a pace in the construction of infrastructure. Which has rapidly revamped the connectivity in Tier-1 cities and due to which both prices and demand have seen a rise.
The report says that the increase in housing prices is directly linked to infrastructure projects that reshape urban connectivity. As cities expand their business reach, new infrastructure is bridging the gap between development and reach. Due to which the surrounding areas are turning into major housing centres.
In which cities the impact is visible?
Bengaluru: The Yellow Line of Namma Metro Phase 2 is already operational, and the Blue Line will be operational by 2026, which will reduce congestion on the tech corridor. This upcoming connectivity is a major reason for the 24 percent growth in Greater Bengaluru, connecting commercial centers with affordable housing.
Hyderabad: With the completion of the North Phase and construction of the South Phase starting in early 2026, the Regional Ring Road will establish an important logistics route for the Pharma City. This better connectivity has also highlighted the housing capacity of the area, leading to an increase in demand for houses in the surrounding areas.
Greater Mumbai: Aqua Line Metro, which connects Aarey JVLR to Cuffe Parade, is witnessing an increase in real estate prices in mid-suburban areas.
1 Finance Housing TRI is considered to be India’s first unbiased, transaction based housing return index, built using actual RERA-registered transaction data. It gives an overall picture of the performance of the housing market by combining pricing per square foot, rental yield and population weight.
How are the real estate figures looking?
Sales value reached Rs 1.52 lakh crore in the third quarter. Greater Mumbai remains the most expensive market in India at Rs 33,762 per square foot. The unsold inventory in Pune is 2.69 lakh units, which indicates increase in supply. Prices in Hyderabad increased 12 per cent year-on-year to Rs 9,100 per square foot due to the Regional Ring Road (RRR). In Delhi-NCR, 60 per cent of the unsold stock is more than 5 years old, which shows that buyers prefer premium new launches.
What do experts say?
Animesh Hardiya, senior vice president of quantitative research at 1 Finance, said that the pricing factors of real estate have not been properly identified because of the lack of on-the-ground information. Additionally, it is misrepresented on social media by using false comparisons, such as comparing the returns of India’s top 50 companies with the entire real estate market. This is wrong.
He said that just as the top 50 companies are fundamentally strong, similarly there are some areas whose real estate fundamentals are strong. There is a need to study employment trends, commercial, social and public infra and traffic patterns. Without this study, any recommendation on real estate is incomplete.