Indian Real Estate Sees Bull Run: Housing Prices Rise 12% Annually in Q2 2024
Positive homebuyer sentiment and steady demand have kept the momentum strong in the residential market across major Indian cities, with Delhi-NCR witnessing the highest price rise of 30%
Indian Real EstateHousing PricesCredaiColliersLiases ForasDelhincrBengaluruMumbaiPuneReal EstateAug 26, 2024
The report, titled Housing Price-Tracker Report Q2 2024, attributed the price rise to positive homebuyer sentiment and steady demand in the residential market. Delhi-NCR saw a maximum 30% price rise to ₹11,279 per square feet from ₹8,652 per square feet.
Within Delhi-NCR, Dwarka Expressway and Greater Noida witnessed a price appreciation of 35% and 24% Q-o-Q in average housing prices, respectively. This is the highest quarterly price rise for these micro-markets in the last few quarters, led by the recent pick-up in luxury segment launches.
Furthermore, preference for spacious housing units in luxury and ultra-luxury segments led to up-to 12% QoQ growth in average price of 3-4 BHK configurations in Delhi NCR.
Bengaluru too witnessed significant price appreciation, with average housing prices in the city breaching the ₹11,000 mark in Q2 2024. Average residential prices in the city increased by 8% on a quarterly basis.
Within Bengaluru, Inner East micro-market saw the highest quarterly rise at 25%, followed by periphery and Outer East micro-market at 10%.
Led by heightened demand in the luxury segment, Inner East and Periphery and Outer West micro-markets have witnessed significant surge in average housing prices for ready units.
Housing prices in Mumbai Metropolitan Region (MMR) increased 6% to ₹20,275 per square feet from ₹19,111 per square feet. In Pune, the prices of residential properties rose 13% to ₹9,656 per square feet in April-June 2024 from ₹8,540 per square feet in the year-ago period.
Unsold inventory remains stable, with a marginal decline on a quarterly basis amid healthy sales in housing units. At 5%, Kolkata saw the highest sequential decline in unsold inventory levels, followed by Pune with a 3% dip.
As of Q2 2024, there was an availability of over 10 lakh housing units across the primary market of eight major cities, with MMR alone having about 40% share in unsold inventory levels.
Despite a yearly increase in the number of unsold units in Hyderabad and Bengaluru, both cities saw a modest dip on a sequential basis.
As the festive season approaches, developers are likely to closely monitor new launches and overall housing stock in prominent residential catchment areas.
Excluding MMR, unsold inventory levels have declined by up to 5% on a quarterly basis across all cities under review. While MMR witnessed healthy sales in residential units during Q2 2024, a significant surge in new launches led to a marginal rise in unsold units.
On an annual basis, Pune witnessed the highest annual decline in unsold units, with a 13% YoY drop. Annual decline in unsold inventory levels have been significant in Ahmedabad, Chennai, and Kolkata too, with a 6-8% drop.
Frequently Asked Questions
What was the average annual increase in housing prices across eight major cities in India?
12%
Which city witnessed the highest price rise in Q2 2024?
Delhi-NCR, with a 30% price rise
What was the average price of 3-4 BHK configurations in Delhi NCR in Q2 2024?
Up-to 12% QoQ growth
Which micro-market saw the highest quarterly rise in Bengaluru?
Inner East micro-market, with a 25% rise
What was the highest sequential decline in unsold inventory levels?
5%, witnessed by Kolkata
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