Driven by healthy demand momentum and positive market sentiment, the average housing prices across the top eight cities in India witnessed a 10% year-on-year growth during October-December quarter of 2024 with Delhi NCR witnessing the highest at 31% YoY price growth, followed by Bengaluru at 23% YoY growth during the period, according to a joint report by CREDAI – Colliers and Liases Foras.
The report titled ‘Housing Price-Tracker Report Q4 2024’ predicted that the demand within luxury and ultra-luxury segments may increase further in 2025 even as the affordable housing segment will continue to form the majority of housing sales. This traction is likely to push average property prices upwards across major residential markets of the country in coming quarters.
The report stated that Delhi-NCR micro-market witnessed the highest growth amongst the country’s top eight cities with average housing prices soaring by 31% YoY. Strong sales momentum, especially in the luxury & ultra-luxury segments can be attributed as the driving factor behind this price rise.
While Dwarka Expressway saw the highest annual property price growth at 58% YoY, Greater Noida too witnessed growth of 52% YoY in property prices during the period. Going forward, the upcoming Jewar International Airport, will continue to spur residential prices in the catchment areas, the report said.
Boman Irani, President, CREDAI National said that growth in property prices underlines the strong confidence among homebuyers and such a trend is expected to continue and flourish through the year, making it a fitting time for homebuyers to tap opportunities in real estate.
Bengaluru micro-market witnessed annual price appreciation of 23%. Similarly, Ahmedabad saw property prices going up by 15% and in Pune this growth was 9% while Kolkata witnessed only 1% YoY jump in property prices.
The decline in the overall unsold inventory continued for the fourth consecutive quarter as it dipped by 5% annually during Q4 CY2024 backed by healthy demand. The unsold inventory at the India level stood below 10 lakh housing units at the end of December 2024, a first such milestone in the last two years, the report said.
It added that Mumbai Metropolitan Region (MMR), with a share of 40 percent, continued to account for a majority of the unsold inventory. Pune witnessed the highest 14% annual drop in unsold inventory followed by Hyderabad with 13% drop.
Chennai and Kolkata also logged a 7% to 10% YoY reduction in the inventory levels. Interestingly, unsold inventory levels in the MMR dropped after almost three years, to around 390,000 units at the end of 2024.
