Real Estate Boom: Housing Prices Surge Across Major Indian Cities
A recent report by CREDAI, Colliers, and Liases Foras reveals a significant 10% year-on-year increase in housing prices across India’s top eight cities, including Delhi NCR, Bengaluru, and Pune. Luxury and ultra-luxury segments are driving the surge.
Housing PricesReal EstateCredaiLuxury HomesMarket GrowthReal Estate NewsFeb 25, 2025
While the affordable housing segment remains strong, the luxury and ultra-luxury segments are expected to gain further momentum in 2025, pushing average housing prices even higher.
India’s top eight cities—Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, MMR, and Pune—saw a 10% year-on-year increase in housing prices in Q4 2024.
This trend is attributed to various factors, including strong IT sector growth, infrastructure upgrades, and rising investor confidence.
Delhi NCR recorded the highest YoY price growth among India's top cities, with a 31% surge in housing prices.
Luxury and ultra-luxury demand has been the primary driver, particularly in areas like Dwarka Expressway, which saw a 58% YoY increase, and Greater Noida, with a 52% YoY rise.
The upcoming Jewar International Airport is expected to further fuel price hikes in the region.
Bengaluru, known for its robust IT sector, followed closely with a 23% rise in housing prices in Q4 2024, making it the second-fastest-growing market in India.
Key areas like Periphery & Outer West Bengaluru saw up to 15% YoY appreciation, driven by a high demand for ready-to-move-in homes and significant infrastructure improvements.
Ahmedabad witnessed a steady 15% year-on-year rise in housing prices, bolstered by rising investor confidence and ongoing infrastructure development.
This consistent price appreciation makes Ahmedabad an attractive market for both buyers and investors.
Pune’s housing market also saw a notable increase, with prices climbing 9% year-on-year.
However, the city experienced a 14% drop in unsold inventory, the highest decline among major cities.
Popular micro-markets like Baner and Nagar Road saw strong demand, fueled by various infrastructure projects.
Chennai recorded a 6% year-on-year price increase, alongside a 7-10% decline in unsold inventory.
The city’s IT corridor and suburban areas remain highly attractive to homebuyers seeking affordable and mid-segment properties.
The Mumbai Metropolitan Region (MMR) continues to be India's most dynamic real estate market, with a 3% YoY price rise in Q4 2024.
Despite accounting for 40% of India’s unsold inventory, MMR saw inventory levels drop for the first time in three years, reflecting renewed buyer confidence.
Demand for luxury housing is the primary factor driving this growth.
Hyderabad’s real estate market remained stable, with a 2% YoY price increase and a 13% drop in unsold inventory.
Strong demand in mid-segment housing and infrastructure-driven growth continue to position Hyderabad as a key investment hub.
Kolkata’s housing market saw a 1% annual price increase and a 7-10% YoY reduction in unsold inventory.
Healthy demand in key locations like New Town and Rajarhat, supported by rising commercial development and infrastructure expansion, is fostering growth in the residential market.
Overall, the report highlights a promising trend in the Indian real estate sector, with luxury and ultra-luxury segments poised to play a crucial role in driving further price appreciation.
Frequently Asked Questions
Which cities saw the highest year-on-year increase in housing prices in Q4 2024?
Delhi NCR recorded the highest year-on-year increase with a 31% surge in housing prices, followed by Bengaluru with a 23% rise.
What factors are driving the surge in luxury and ultra-luxury housing demand?
Strong IT sector growth, infrastructure upgrades, and rising investor confidence are the primary factors driving the surge in luxury and ultra-luxury housing demand.
How has the Jewar International Airport project affected housing prices in Delhi NCR?
The Jewar International Airport project is expected to further fuel price hikes in the Delhi NCR region, particularly in areas like Dwarka Expressway and Greater Noida.
What is the current trend in unsold inventory in major Indian cities?
Several cities, including Pune and MMR, have seen a decline in unsold inventory, reflecting renewed buyer confidence and strong demand in various housing segments.
Which city saw the most significant drop in unsold inventory?
Pune experienced the highest decline in unsold inventory, with a 14% drop, indicating strong demand and market activity.
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