Housing Prices Rise in Top Indian Cities: Delhi NCR Leads with 30% Increase
New Delhi, India – The average housing prices across the top eight Indian cities saw a 3% quarterly growth in Q2 2024, marking the 14th consecutive quarter of positive growth and homebuyer sentiment, according to a report by CREDAI, Colliers, and Liases Foras.
Annual Growth in Housing Prices
On a yearly basis, average housing prices in India rose by 12% to Rs 10,804 per sq ft during Q2 2024. Seven out of the eight cities reviewed saw an annual increase in housing prices:
- Delhi NCR: 30%
- Bengaluru: 28%
- Ahmedabad: 13%
- Pune: 13%
- Hyderabad: 7%
- Kolkata: 6%
- Mumbai Metropolitan Region (MMR): 6%
- Chennai: No change
Expert Opinions
Badal Yagnik, CEO of Colliers India, noted that the upcoming festive season will further boost housing prices. He said, “Average housing prices have witnessed a consistent double-digit annual growth rate, adding buoyancy to the sustained growth story in residential real estate. We envisage a strong finish for the housing market in 2024.”
Boman Irani, President of CREDAI National, highlighted a shift towards real estate as a preferred asset. He said, “Indian Real Estate has been experiencing a bull run, substantiated by the volume of transactions and positive sentiments towards housing. This has had a direct impact on housing prices, signifying underlying demand and a shift towards real estate as a preferred asset class.”
City-wise Analysis
Delhi NCR saw a 30% YoY surge in housing prices, with Dwarka Expressway and Greater Noida experiencing increases of 69% and 45%, respectively. Unsold inventory in the region dropped for the sixth consecutive quarter.
Bengaluru’s housing prices surged 28% YoY, mainly led by the luxury segment. Periphery and outer east micro markets saw a 45% price increase. Ongoing metro extensions and upcoming suburban rail projects are expected to further boost prices.
Ahmedabad saw a 13% price surge, with city central west and eastern suburbs experiencing the highest increases at 16% and 14%, respectively. Unsold inventory dropped by 8%.
Pune also saw a 13% price surge and a 13% decrease in unsold inventory. 2-3 BHK apartments saw an 11-12% annual hike in prices.
Hyderabad experienced a 7% annual surge in housing prices, with ready-to-move-in units seeing a 21% price increase. Unsold inventories continued to decline.
MMR and Kolkata saw a modest 6% annual growth in housing prices. Panvel in New Mumbai saw a 16% annual increase, while east Kolkata units saw a 17% increase. Unsold inventory declined in both cities.
Chennai remained stable in housing prices but saw a 7% decline in unsold inventories despite new launches.
Doubts Revealed
Delhi NCR -: Delhi NCR stands for Delhi National Capital Region. It includes Delhi and nearby cities like Gurgaon, Noida, and Faridabad.
Q2 2024 -: Q2 2024 means the second quarter of the year 2024. A quarter is a three-month period, so Q2 includes April, May, and June.
Festive season -: The festive season in India includes important festivals like Diwali and Dussehra, which usually happen in October and November. During this time, people often buy new things, including houses.
Unsold inventories -: Unsold inventories refer to houses that are built but not yet sold. When these numbers drop, it means more houses are being bought.
Pune -: Pune is a city in the state of Maharashtra, known for its educational institutions and growing IT industry.
Chennai -: Chennai is a city in the state of Tamil Nadu, known for its cultural heritage and as a major business hub in South India.
