Nagpur Emerges as India's Fastest-Growing Housing Market, Surpassing Major Metros
Nagpur has recorded the highest housing price growth among all major Indian cities, according to the latest data released by the Reserve Bank of India (RBI). The city's Housing Price Index (HPI) reached 138.24 for the third quarter of fiscal year 2025-26, significantly outpacing the national average and other metropolitan centers.
RBI Data Highlights Nagpur's Remarkable Surge
The RBI's comprehensive analysis, which tracks residential property trends across 18 major cities including Mumbai and Pune, reveals that Nagpur's HPI stands at 138.24 for Q3 FY26. In stark contrast, the All India HPI for the same quarter is 115.6, representing a year-on-year growth of 3.6% and a 6.9% increase compared to the same quarter last year. The national index growth is primarily driven by Nagpur, along with Chandigarh and Jaipur.
Historical Perspective and Comparative Analysis
Using 2022-23 as the base year, the RBI data shows Nagpur's HPI was 98.08 in Q1 of 2022-23, climbing to 138.24 in Q3 of 2025-26. This represents a growth of nearly 3% compared to the previous quarter of the current fiscal year. While the index experienced fluctuations, including a dip from 115.64 in Q1 of 2023-24 to 97 in Q4 of the same year, the overall trajectory has been strongly upward.
Comparatively, Mumbai's HPI stands at 105.90 and Pune's at 112.41, while Delhi records the lowest at 101.26. Although Chennai shows an HPI over 162, this figure includes commercial property rates, which are substantially higher than residential prices. When considering purely residential housing prices, Nagpur leads the nation according to RBI charts.
Methodology and Economic Implications
The RBI calculates the Housing Price Index based on stamp duty paid during property sales, with prices documented in official records. This year, the Maharashtra state government anticipates collecting 1,800 crore rupees in stamp duty revenue. With a 5% basic stamp duty rate, this projection suggests property transactions worth at least 36,000 crore rupees are expected to occur in Nagpur alone.
Driving Factors Behind the Price Surge
Real estate experts attribute Nagpur's soaring housing prices to increased demand fueled by recent developmental projects. "The high demand due to government projects is propelling the prices," stated Gaurav Agrawala, former president of the Confederation of Real Estate Developer Association of India (CREDAI). This sentiment reflects the broader market dynamics where infrastructure development and government initiatives are creating substantial upward pressure on residential property values.
The data underscores Nagpur's transformation into one of India's most dynamic real estate markets, with growth rates that consistently exceed those of traditional metropolitan powerhouses. As government projects continue to stimulate demand, the city's housing market shows no signs of slowing its remarkable ascent.
