India's Housing Market Sees Significant Growth: CREDAI Report
Average housing prices across India's top eight cities witnessed a 10% annual increase during Q4 2024, with Delhi NCR leading the rise at 31%. The report by CREDAI and leading property consulting firms highlights a sustained upward trend in housing prices
Housing MarketReal EstateProperty PricesUnsold InventoryLuxury SegmentsReal Estate MumbaiFeb 25, 2025
This marks the 16th consecutive quarter of rising prices since 2021.
Delhi NCR saw the highest rise at 31% year-over-year (YoY) growth, followed by Bengaluru at 23% YoY.
While the affordable housing segment will continue to form the bulk of housing sales, demand within the luxury and ultra-luxury segments is expected to amplify further in 2025.
This trend is likely to drive average housing prices upwards in most major residential markets over the next few quarters.
Overall unsold inventory levels continued to decline for the fourth consecutive quarter, dropping 5% annually during Q4 2024.
This decline is backed by healthy demand.
By the end of December 2024, unsold inventory at the national level stood below 10 lakh housing units for the first time in the last two years.
MMR, with a 40% share, continued to account for the 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.
The sustained growth in housing prices underscores the strong confidence among homebuyers, driven by a preference for spacious living and lifestyle upgrades.
Evolving consumer aspirations have led to increased demand for larger homes, better amenities, and integrated living spaces.
This positive sentiment has translated into steady sales momentum across segments.
While evolving preferences and lifestyle upgrades remain key motivators, cost pressures in construction and land acquisition are also significantly contributing to pricing trends.
A potential reduction in interest rates could further boost affordability and drive even greater demand.
This positive trend is expected to continue and thrive through the year, making it an opportune time for homebuyers to invest in real estate, according to Boman Irani, President of CREDAI National.
Within the top cities, Delhi NCR saw the highest rise in housing prices at 31% YoY.
This price rise is attributable to strong sales momentum, particularly in the luxury and ultra-luxury segments.
The Dwarka Expressway witnessed the highest annual price rise at 58%, followed by Greater Noida with 52% YoY growth.
The upcoming Jewar International Airport is expected to further spur residential prices in the catchment areas.
Annual price appreciation was also notable in Bengaluru, Ahmedabad, and Pune, driven by healthy demand and infrastructure upgrades in key areas.
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.
As a result, average housing prices in these micro-markets increased by up to 15% YoY during Q4 2024.
During Q4 2024, all the top eight Indian cities saw a decline in unsold inventory levels.
Pune experienced the sharpest drop at 14% YoY, closely followed by Hyderabad at 13%.
Chennai and Kolkata recorded a 7-10% YoY decrease.
Interestingly, unsold inventory levels in MMR dropped after almost three years to around 390,000 units at the end of 2024.
The demand for luxury and ultra-luxury segments was particularly strong throughout 2024.
The share of spacious dwelling units in overall housing sales has been on the rise, particularly in cities such as Bengaluru, Delhi NCR, and Pune.
Average housing prices of 3-4 BHK apartments in these cities increased by up to 34% YoY during Q4 2024.
Evolving lifestyles, the desire for upscale amenities, a growing population of high-net-worth individuals (HNIs), and the perception of luxury properties as status symbols and investment opportunities will continue to drive housing sales in premium categories in the next few quarters, according to Vimal Nadar, Senior Director and Head of Research at Colliers India.
Sales witnessed a marginal decline in the last quarter, led by moderated new launches.
However, we anticipate a growth in affordable and mid-segment supply and sales going forward, which will change the composition of supply, which has been skewed towards the luxury segment for the last four years, said Pankaj Kapoor, Managing Director of Liases Foras.
Key takeaways from the report include a 10% annual rise in the top 8 cities in India during Q4 2024, with an average price of Rs 11,266 per sq ft.
Growth is driven by steady demand and positive market sentiment.
All 8 cities saw an annual increase in housing prices, with Delhi NCR experiencing the highest rise at 31% YoY.
Bengaluru followed with a 23% YoY rise.
Overall unsold inventory levels dropped by 5% annually, with a sequential drop for the fourth consecutive quarter.
Pune saw the highest annual drop at 14%, followed by Hyderabad with a 13% YoY drop.
Frequently Asked Questions
What cities are included in the top eight for the housing market report?
The top eight cities included in the report are Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, MMR, and Pune.
What was the highest annual price rise in the top cities during Q4 2024?
Delhi NCR experienced the highest annual price rise at 31% YoY during Q4 2024.
How much did unsold inventory levels drop in Q4 2024?
Overall unsold inventory levels dropped by 5% annually during Q4 2024.
What factors are driving the demand for larger homes and luxury segments?
Evolving consumer aspirations, the desire for upscale amenities, a growing population of high-net-worth individuals (HNIs), and the perception of luxury properties as status symbols and investment opportunities are driving the demand for larger homes and luxury segments.
What is the expected trend in the affordable and mid-segment housing market for the next few quarters?
We expect a growth in affordable and mid-segment supply and sales, which will change the composition of supply that has been skewed towards the luxury segment for the last four years.
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