Housing Prices Surge 11% in Top Indian Cities: Is Your City Part of the Boom?
As the real estate sector continues to evolve, housing prices in major Indian cities have recorded a significant 11% year-on-year increase during the third quarter of 2024. Check if your city is part of this rising trend.
Real Estate Pune:The average housing price across eight major Indian cities now stands at Rs 11,000 per square foot, according to a report from CREDAI – Colliers - Liases Foras. Delhi NCR has led the pack with a 32% YoY increase in housing prices during Q3 2024, making it the hottest market in the country. If you're planning to upgrade your home or invest in real estate, it might be worth checking if your city is on the list of India's most dynamic housing markets. Housing prices have been on a steady climb for 15 consecutive quarters, a trend that feels as consistent as your morning chai.Whether you're looking for a luxury apartment or a compact starter home, the market dynamics are changing in ways that could significantly impact your property goals. So, where does your city stand in this housing boom?Housing prices in India’s top cities have been steadily climbing, with an 11% year-on-year (YoY) increase recorded during the third quarter of 2024. This marks the 15th consecutive quarter of rising property prices since 2021, driven by robust demand and positive market sentiment. Among the cities, Delhi NCR experienced the highest surge, followed by Bengaluru. As the real estate sector adjusts to changing dynamics, the demand for residential properties is expected to remain healthy, keeping 2024 on track for a strong overall performance. Top Cities See Steady Price Growth Average Housing Price Q3 2024 (Rs/sq ft) (Source Liases Foras, Colliers)- Delhi NCR Rs 11,000 per sq ft, 32% YoY increase- Bengaluru Rs 10,500 per sq ft, 24% YoY increase- Mumbai MMR Rs 10,800 per sq ft, 18% YoY increase- Pune Rs 9,500 per sq ft, 15% YoY increase- Chennai Rs 8,500 per sq ft, 10% YoY increase- Kolkata Rs 7,000 per sq ft, 8% YoY increaseDelhi NCR led the pack with a 32% YoY increase in housing prices during Q3 2024. Within the region, areas like Dwarka Expressway and Golf Course Extension Road saw price jumps of over 50% YoY. Compared to 2020, the average housing prices in Delhi NCR have surged by 75%, primarily driven by demand for luxury and spacious homes.In Bengaluru, the average housing price rose by 24% YoY, with a strong preference for larger configurations such as 3- and 4-bedroom units. Mumbai Metropolitan Region (MMR) and Pune also showed steady growth, although both regions are nearing a plateau in terms of new sales and supply. Unsold Inventory DeclinesDespite high unsold inventory levels of over 10 lakh housing units across the eight cities, there has been a consistent quarterly decline for three consecutive quarters. MMR accounts for the largest share of this inventory at 40%. Pune showed the sharpest annual drop of 13%, marking its fifth straight quarter of reduced unsold units. Chennai and Kolkata also recorded notable inventory reductions of 7-9% annually.Vimal Nadar, Senior Director and Head of Research at Colliers India, said, “Developers are being cautious with new launches. They are now targeting high-demand pockets and shifting focus to luxury and ultra-luxury segments. Spacious configurations, such as 3-4BHK units in cities like Bengaluru and Delhi NCR, saw price increases of up to 26% YoY.” Market TrendsBoman Irani, President of CREDAI National, said, “The steady rise in housing prices is a reflection of positive homebuyer sentiment and the conducive nature of the market. The demand for larger homes and luxurious amenities continues to drive prices upward. We anticipate this momentum to carry forward into 2025, especially if rate cuts are announced.”Adding to this, Badal Yagnik, CEO of Colliers India, said, “Although the market is stabilising, the long-term outlook remains strong. Developers are recalibrating by offering compact units for price-sensitive buyers while maintaining growth in the luxury segment. Monetary policy easing and flexible payment options could further aid buyers.”“Despite high prices, affordability and demand are intact. However, supply is becoming a challenge in cities like NCR and Chennai, which may lead to a surge in new launches in these regions,” said Pankaj Kapoor, Managing Director of Liases Foras. Luxury and Spacious Homes Lead the WayThe luxury and ultra-luxury segments are seeing growing interest. Launches of high-end projects have boosted demand in regions like Delhi NCR and Bengaluru, while developers are also tailoring offerings to meet the needs of aspirational homebuyers. Interestingly, compact units have also found favour among price-conscious buyers in smaller markets. Flexible payment plans, discounts, and bundled offerings have further helped developers maintain sales momentum across various segments.If you're considering a move or an investment in real estate, now is a critical time to assess the market trends and opportunities in your city.
Frequently Asked Questions
What is the average housing price per square foot in top Indian cities as of Q3 2024?
The average housing price across eight major Indian cities now stands at Rs 11,000 per square foot, according to a report from CREDAI – Colliers - Liases Foras.
Which city showed the highest increase in housing prices YoY in Q3 2024?
Delhi NCR led the pack with a 32% year-on-year increase in housing prices during Q3 2024.
What factors are driving the steady rise in housing prices?
The steady rise in housing prices is driven by robust demand, positive market sentiment, and a focus on luxury and ultra-luxury segments with larger configurations.
How have unsold inventory levels changed across major cities?
Despite high unsold inventory levels of over 10 lakh housing units, there has been a consistent quarterly decline for three consecutive quarters, with Pune showing the sharpest annual drop of 13%.
What are the future prospects for the real estate market in India?
The long-term outlook remains strong, with developers recalibrating to offer compact units for price-sensitive buyers while maintaining growth in the luxury segment. Monetary policy easing and flexible payment options could further aid buyers.
