Average housing prices across the top eight markets in India witnessed a 10% year-on-year (YoY) rise during the last quarter of 2024. As per a joint report by CREDAI – Colliers - Liases Foras, Delhi NCR witnessed the highest rise at 31% YoY growth, followed by Bengaluru at 23% YoY rise during Q4 2024.
Interestingly, average housing prices have been on a rising spree for the 16th consecutive quarter, starting 2021 and a price appreciation is seen in all the eight major cities.
Badal Yagnik, Chief Executive Officer at Colliers India said that the average residential prices can potentially increase at similar levels in 2025 on an annual basis.
“The recent repo rate reduction along with government initiatives to fund stressed residential projects will provide boost to affordable housing segment. Going ahead, with elbowroom for further reduction in benchmark lending rates, most cities are likely to witness traction in housing sales across categories,” added Yagnik.
After Delhi NCR and Bengaluru, the maximum price hike was seen in Ahmedabad (15%) and Pune (9%). Chennai saw a 6% price hike, Mumbai Metropolitan Region a 3% increase, Hyderabad a 2% and Kolkata a minor increase of 1%.
Within Delhi NCR, Dwarka Expressway witnessed the highest annual price rise at 58% and Greater Noida too witnessed impressive growth of 52% YoY. 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.
Boman Irani, President of CREDAI National stated that the sustained growth in housing prices underscores the strong confidence among homebuyers which is driven by a preference for spacious living and lifestyle upgrades.
“While evolving preferences and lifestyle upgrades remain key motivators, cost pressures in construction and land acquisition are also significantly contributing to pricing trends. As we look ahead, a potential reduction in interest rates could further boost affordability and drive even greater demand," added Irani.
The CREDAI – Colliers - Liases Foras report also stated that the unsold inventory continued to decline for the fourth consecutive quarter and dropped 5% annually during Q4 2024 backed by healthy demand.
“At the end of December 2024, unsold inventory at the India level stood below 10 lakh housing units for the first time in the last two years. MMR, with a share of 40%, continued to account for a majority of the unsold inventory. Notably, Pune saw the highest annual drop in unsold inventory at 14%, closely followed by Hyderabad with 13% decline,” said the report.