Residential Property Prices in India's Top Cities Surge 10% YoY in Q4 2024
Residential property prices in India’s top eight cities witnessed a significant 10% year-on-year increase in the last quarter of 2024, driven by strong demand and positive market sentiment. Delhi NCR led the charge with a 31% YoY price hike, followed by B
Property PricesReal EstateResidential HousingLuxury HousingMarket SentimentReal Estate MumbaiFeb 25, 2025
The rise was driven by strong demand and positive market sentiment, with Delhi NCR leading at a staggering 31% YoY price increase, followed by Bengaluru at 23%.
The affordable housing segment continues to dominate sales, but demand for luxury and ultra-luxury properties is expected to grow in 2025, further pushing prices upward.
The steady appreciation is fueled by evolving consumer preferences, with homebuyers increasingly seeking larger spaces and premium amenities.
According to Boman Irani, President of CREDAI National, the continued price surge reflects buyer confidence and a preference for upgraded living spaces.
“Cost pressures in construction and land acquisition are also contributing to price trends.
If interest rates decline, affordability will improve, driving even greater demand,” he added.
India’s unsold housing inventory shrank for the fourth consecutive quarter, dropping by 5% annually in Q4 2024.
For the first time in two years, the total number of unsold units fell below 10 lakh.
However, the Mumbai Metropolitan Region (MMR) still accounted for nearly 40% of the total unsold stock.
Pune recorded the sharpest decline at 14% YoY, followed closely by Hyderabad at 13%.
Pankaj Kapoor, Managing Director of Liases Foras, noted that sales dipped slightly in the last quarter due to reduced new launches.
However, he expects growth in affordable and mid-segment housing, shifting market dynamics that have been skewed toward luxury housing for the past four years.
Delhi NCR recorded the highest price appreciation among India’s top cities, with rates soaring by 31% in Q4 2024.
Bengaluru, Ahmedabad, and Pune also witnessed notable price gains, propelled by infrastructure developments.
Micro-markets like Outer West Bengaluru and Pune’s Baner and Nagar Road experienced up to 15% YoY price growth, particularly in ready-to-move-in properties.
The luxury and ultra-luxury segments saw particularly strong demand throughout 2024, driving up the prices of larger homes.
In cities like Bengaluru, Delhi NCR, and Pune, the cost of 3-4BHK apartments surged by up to 34% YoY.
Vimal Nadar, Senior Director & Head of Research at Colliers India, noted that evolving lifestyles, the rise of high-net-worth individuals, and the perception of luxury properties as status symbols are fueling sales in premium housing.
“Luxury real estate remains an attractive investment, and this momentum is likely to persist in the coming quarters,” he added.
With potential interest rate cuts and continued demand across all housing segments, experts predict that residential prices will maintain a similar growth trajectory in 2025.
Frequently Asked Questions
What caused the 10% year-on-year increase in residential property prices in India's top cities?
The increase was driven by strong demand and positive market sentiment, with homebuyers increasingly seeking larger spaces and premium amenities.
Which city experienced the highest price appreciation?
Delhi NCR recorded the highest price appreciation with a 31% year-on-year increase.
How has the unsold housing inventory changed in Q4 2024?
The unsold housing inventory shrank for the fourth consecutive quarter, dropping by 5% annually in Q4 2024, with the total number of unsold units falling below 10 lakh for the first time in two years.
What trends are expected in the luxury and ultra-luxury housing segments?
Demand for luxury and ultra-luxury properties is expected to grow in 2025, driven by evolving consumer preferences and the perception of luxury properties as status symbols.
What factors are contributing to the price trends in the real estate market?
Cost pressures in construction and land acquisition, along with strong market sentiment and positive demand, are contributing to the price trends. Potential interest rate cuts could further improve affordability and drive greater demand.
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