Housing Prices Soar in Top Indian Cities: Pune and Bengaluru Lead the Charge
The last quarter of 2024 saw a significant 10% year-on-year increase in average housing prices across the top eight markets in India, with Pune and Bengaluru leading the rise.
Housing PricesReal Estate MarketIndian CitiesProperty MarketUnsold InventoryReal Estate PuneFeb 25, 2025
As per a joint report by CREDAI, Colliers, and Liases Foras, Delhi NCR witnessed the highest rise at 31% YoY growth, followed by Bengaluru at 23% YoY rise during Q4 2024.
Interestingly, average housing prices have been on a rising spree for the 16th consecutive quarter, starting in 2021, with price appreciation seen in all the eight major cities.
Badal Yagnik, Chief Executive Officer at Colliers India, stated that the average residential prices can potentially increase at similar levels in 2025 on an annual basis.
“The recent repo rate reduction along with government initiatives to fund stressed residential projects will provide a boost to the 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,” added Yagnik.
After Delhi NCR and Bengaluru, the maximum price hike was seen in Ahmedabad (15%) and Pune (9%).
Chennai saw a 6% price hike, Mumbai Metropolitan Region a 3% increase, Hyderabad a 2%, and Kolkata a minor increase of 1%.
Within Delhi NCR, Dwarka Expressway witnessed the highest annual price rise at 58%, and Greater Noida also witnessed impressive growth of 52% YoY.
Prominent micro-markets such as Periphery & Outer West in Bengaluru, and Baner & Nagar Road in Pune saw significant traction in ready-to-move-in units.
Boman Irani, President of CREDAI National, stated that the sustained growth in housing prices underscores the strong confidence among homebuyers, driven by a preference for spacious living and lifestyle upgrades.
“While evolving preferences and lifestyle upgrades remain key motivators, cost pressures in construction and land acquisition are also significantly contributing to pricing trends.
As we look ahead, a potential reduction in interest rates could further boost affordability and drive even greater demand,” added Irani.
The CREDAI – Colliers - Liases Foras report also noted that the unsold inventory continued to decline for the fourth consecutive quarter and dropped 5% annually during Q4 2024, backed by healthy demand.
“At the end of December 2024, unsold inventory at the India level stood below 10 lakh housing units for the first time in the last two years.
MMR, with a share of 40%, continued to account for a majority of the unsold inventory.
Notably, Pune saw the highest annual drop in unsold inventory at 14%, closely followed by Hyderabad with a 13% decline,” said the report.
Overall, the Indian real estate market is showing robust growth, with key cities like Pune, Bengaluru, and Delhi NCR leading the way.
The combination of government support, reduced interest rates, and strong buyer confidence is expected to sustain this positive trend in the coming years.
Frequently Asked Questions
Which city saw the highest year-on-year increase in housing prices in Q4 2024?
Delhi NCR saw the highest year-on-year increase in housing prices at 31% during Q4 2024.
What factors are contributing to the rise in housing prices in India?
The rise in housing prices is driven by evolving preferences for spacious living, lifestyle upgrades, cost pressures in construction, and land acquisition. Government initiatives and potential reductions in interest rates are also boosting the market.
How has the unsold inventory changed in the Indian real estate market?
The unsold inventory has declined for the fourth consecutive quarter and dropped 5% annually during Q4 2024, reaching below 10 lakh housing units for the first time in two years.
Which micro-market in Delhi NCR saw the highest price rise?
Dwarka Expressway in Delhi NCR saw the highest annual price rise at 58%.
What impact does the reduction in repo rates have on the real estate market?
The reduction in repo rates, along with government initiatives to fund stressed residential projects, boosts the affordable housing segment and increases traction in housing sales across categories.
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