The average housing prices across India's top eight cities saw a 10 percent on year growth during the December quarter, as the momentum in demand stayed strong, with the Delhi NCR prices rising the most at 31 percent on year, showed a joint report by CREDAI-Colliers and Liases Foras released on February 25.
The ‘Housing Price-Tracker Report Q4 2024’ report has projected that the demand within luxury and ultra-luxury segments may amplify further in 2025, while affordable housing segment will continue to form the bulk of housing sales. This traction is likely to drive average housing prices upwards across India’s major residential markets over the next few quarters.
Boman Irani, President, CREDAI National said the sustained growth in housing prices underscores the homebuyers’ preference for spacious living and lifestyle upgrade.
“As we look ahead, a potential reduction in interest rates could further boost affordability and drive even greater demand. This positive trend is expected to continue and thrive through the year, making it an opportune time for homebuyers to invest in real estate," Irani added.
Delhi NCR Prices on the Rise
The Delhi NCR region saw the highest rise amongst India's top eight cities with housing prices rising by an average of 31 percent on year. This price rise is attributable to strong sales momentum, particularly in the luxury & ultra-luxury segments.
Delhi’s Dwarka Expressway witnessed the highest annual price rise at 58 percent, while Greater Noida too saw a growth of 52 percent YoY in property prices during the December quarter. The upcoming Jewar International Airport in Greater Noida is expected to spur residential prices in its region further, the report added.
A notable price appreciation was seen in Bengaluru (23 percent), Ahmedabad (15 percent) and Pune (9 percent) as well, led by healthy demand and infrastructure upgrades.
Prominent micro markets such as periphery and outer-west Bengaluru, and Baner & Nagar Road in Pune saw traction in ready-to-move-in units. The average housing prices in these micro markets increased by up to 15 percent on year during the December quarter.
Pankaj Kapoor, Managing Director, Liases Foras said, “We anticipate a growth in affordable and mid-segment supply and sales going forward, which will change the composition of supply, which has been skewed towards the luxury segment for the last four years.”
Unsold Inventory Falling
The overall unsold inventory continued to decline for a fourth consecutive quarter, down 5 percent during Q4CY24, on healthy demand. At the end of December 2024, the pan-India unsold inventory stood below 10 lakh housing units for the first time in two years.
The Mumbai Metropolitan Region (MMR) - with a share of 40 percent – still accounts for a majority of the unsold inventory. Pune saw the highest annual drop in unsold inventory at 14 percent, closely followed by Hyderabad with 13 percent decline.
Chennai and Kolkata too recorded a 7-10 percent YoY decrease in the inventory levels. The unsold inventory levels in the Mumbai Metropolitan Region fell after almost three years, to around 3.90 lakh units at the end of 2024.
“The recent repo rate reduction along with government initiatives to fund stressed residential projects will provide boost to affordable housing segment. Going ahead, with elbowroom for further reduction in benchmark lending rates, most cities are likely to witness traction in housing sales across categories. Resultantly, average residential prices can potentially increase at similar levels in 2025 on an annual basis,” Badal Yagnik, Chief Executive Officer, Colliers India said.
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