The average housing prices in pan India jumped 9% year-on-year to Rs 10,226 per sq ft during the fourth quarter of 2023, according to a report released by CREDAI, Colliers and Liases Foras. The surge in prices was led by notable growth in housing demand, especially in mid and luxury segments, the report stated.
All eight cities — Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune saw an increase in housing prices in Q4.
Housing prices jump 21% in Bengaluru in Q4, 11% in Kolkata
With a 21% year-on-year rise, Bengaluru saw the highest surge in housing prices among the top eight cities in India. The peripheral and outer east sub-market of Bengaluru witnessed a price rise of 42% year-on-year in Q4, the report said. 1BHK apartments continued to see higher demand. The prices of 1BHK rose 36% year-on-year in Q4, all thanks to robust demand, especially in near emerging IT-dominant zones such as Whitefield, KR Puram
and Sarjapur.
Housing prices increased 11% year-on-year in Q4 in Kolkata. “Sub-markets such as Outer Kolkata and East Kolkata showed the highest annual surge at about 32% and 27% respectively due to strong demand, given their proximity to IT zones,” the report mentioned. Around 63% of the unsold units fell in the affordable-and-mid segment, of which the majority were in East Kolkata.
Housing prices in Hyderabad increased 10% annually with the highest surge in the Southwest sub-market at 24% year-on-year in Q4. “4BHK units saw the highest annual price rise at 14% followed by 1BHK units with
11% year-on-year rise,” the report said. Another interesting trend is that around 95% of the unsold inventory is under construction in the southern city, reflecting positive developer sentiments amidst promising demand from the IT workforce and upcoming infrastructure plans.
Housing prices soared 10% year-on-year in Pune amid a surge in demand for the high-end luxury segment in Baner and Camp sub-markets. “In the next 2-3 years, Baner, Shivajinagar, and Nagar Road sub-markets are likely to witness a rise in residential activity amidst the upcoming metro line 3 and mega office developments,” the report stated. 2BHK and 3BHK apartments witnessed the highest price rise of 8% annually in Pune.
How residential prices have jumped in a year (in Rs/sq ft)
City | Average Price 2022 (Rs) | Average Price 2023 (Rs) | Price change (2023 vs 2022) |
Bengaluru | 8,276 | 9,976 | 21% |
Kolkata | 7,144 | 7,912 | 11% |
Hyderabad | 10,090 | 11,083 | 10% |
Pune | 8,379 | 9,185 | 10% |
Ahmedabad | 6,203 | 6,737 | 9% |
Delhi NCR | 8,394 | 9,170 | 9% |
MMR | 19,287 | 20,047 | 4% |
Chennai | 7,445 | 7,701 | 3% |
Source: A report by CREDAI, Colliers and Liases Foras
With a 9% year-on-year hike, the housing prices in the Delhi-NCR area continued to show an upward momentum. Housing prices in the Noida extension saw a yearly surge of 61% in the fourth quarter, followed by Golf Course Road amidst improving infrastructure. “Owing to significantly higher new launches in luxury and ultra-luxury segment, Noida region accounted for 57% of the under-construction unsold units,” the report added.
Housing prices in Ahmedabad rose 9% year-on-year amid an increase in residential demand especially in the mid-and-luxury segment. With upcoming infrastructure developments along GIFT City, housing prices
are likely to further rise in the surrounding areas. “City Central West, Southwest, and Gandhinagar suburb saw the highest annual price rise in the range of 8-10% and are poised for further growth,” the report said.
Housing prices witnessed a 4% rise annually in the Mumbai Metropolitan Region with a 17% year-on-year surge in sub-markets such as Island City, followed by Navi Mumbai and Thane. “Completion of Mumbai Trans Harbour Link (MTHL) has led to a surge in prices in sub-markets in and around Navi Mumbai. Several large upcoming projects around these sub-markets are further expected to push the prices upwards,” the report said. Further, the price of 3BHK and 4BHK apartments saw a 4-6% year-on-year rise, backed by continued demand in the high-end segment.
Increase in housing prices is a combination of a number of factors
Boman Irani, President of CREDAI National stated, “The year-on-year increase in housing prices is a combination of a number of factors – characterized by strong, robust demand from homebuyers – especially for mid and premium segments, along with the existence of a conducive buying eco-system coupled with healthy macro-economic factors, and the rise in prices of construction materials. We expect both – housing demand and supply – to thrust forward in 2024 not only in top 8 cities but in Tier II, and III regions as well.”
“Looking ahead to 2024, the market is well poised to maintain its current trajectory, with the mid and luxury segments expected to thrive further, offering lucrative opportunities for investors and homebuyers alike,” Badal Yagnik, Chief Executive Officer, Colliers, India.