NEW DELHI: Average housing prices surged by 10% annually during Q1 2024 across the top eight cities i.e. Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Kolkata, Hyderabad, Mumbai and Pune, according to a report by CREDAI National, Colliers and Liases Foras.
On a quarterly basis too, housing prices across majority of the cities witnessed a noticeable 2-7% increase.
Unsold inventory at an India level witnessed a marginal 3% year-on-year increase. Notably, Pune led with a significant 10% year-on-year drop in unsold inventory, closely followed by Delhi-NCR and Ahmedabad, each recording an 8% annual reduction. As of Q1 2024, unsold inventory across the top eight cities stood close to 10 lakh units, with Mumbai Metropolitan Region (MMR) alone having almost a 40% share.
Boman Irani, president of CREDAI National said, “The surge in housing prices is a direct consequence of the robust housing demand that we are witnessing – especially in premium and luxury housing – by homebuyers across the country. These are directly linked to not just a stable lending eco-system but also the emergence of various micro-markets that have been the primary beneficiaries of significant infrastructural projects – which has altered the demand-supply dynamics in residential real estate and we do not foresee this momentum to slow down in FY24/25 as well.”
Bengaluru witnessed the most significant annual price surge among India’s top eight cities, with prices soaring by 19%. In Delhi NCR, housing prices saw a substantial annual increase of 16%.
“With moderate inflation and interest rates, the real estate sector is expected to maintain demand due to affordability. The prices could increase by 10-15%, bridging the gap between affordability and inflation-adjusted prices,” said Pankaj Kapoor, managing director, Liases Foras.
