The average housing prices across the top eight cities increased by 12% year-on-year in the second quarter of 2024 backed by robust demand momentum, according to a report released by CREDAI, Colliers and Liases Foras. Seven out of eight cities saw an increase in housing prices (annually) with Delhi NCR witnessing the highest rise, followed by Bengaluru.
Residential housing prices in the Delhi-National Capital Region (Delhi-NCR) jumped by 30% year-on-year during the April-June quarter of 2024, the highest among the top eight cities in India, according to the report. In the Delhi-NCR region, the average housing prices jumped 69% in Dwarka Expressway during the quarter under review. Meanwhile, the average housing prices soared 45% year-on-year in Greater Noida during Q2 2024, according to the report. “Both these markets saw select marquee projects by leading developers during the quarter within luxury and ultra-luxury segments,” the report said.
Bengaluru came second in the list as the housing prices jumped by 28% year-on-year in the southern city, as per the report. In Bengaluru, “the Periphery & Outer East micro markets witnessed the highest price rise at 42% year-on-year. Ongoing Metro extensions and upcoming suburban rail projects are likely to further boost residential activity, especially in Inner East and Periphery and Outer North micro-markets,” the report added. “1BHK apartments continued to see healthy demand, with their prices rising at 44% year-on-year followed by 4BHK configuration at 29% year-on-year rise,” the report said.
“Housing prices rose 13% YoY amid significant traction in mid-segment. With upcoming infrastructure developments such as Ahmedabad Metro Phase 2, City Square at Sindhu Bhavan Road, and the recent collaboration with ADB to develop the city’s peri-urban areas, Ahmedabad is likely to witness heightened residential activity in the next few years. City Central West and Eastern Suburb micro markets saw the highest annual price rise at 16% and 14%, respectively,” the report mentioned.
Boman Irani, President of CREDAI National stated, “Indian Real Estate has been somewhat experiencing a bull run in the past few quarters, substantiated by the volume of transactions across top eight cities as well as the prevalent positive sentiments towards housing. There has been a direct impact on housing prices — signifying not just the underlying demand but the definitive shift towards real estate as a preferred asset class. With the upcoming festive season — coupled with the Government’s focus on infrastructure and a relatively stable lending eco-system — we project this momentum to further have an impact on both prices and unsold inventory levels, as the industry’s demand-supply dynamics change.”
Residential property prices in India in Q2 2024
| Pan India residential price trends (Q2 2024) (in Rs/sq ft) | |||||
| City | Average Price Q2 2023 (Rs) | Average Price Q1 2024 (Rs) | Average Price Q2 2024 (Rs) | QoQ Price change (Q2 2024 vs Q1 2024) (Rs) | YoY Price change (Q2 2024 vs Q2 2023) (Rs) |
| Ahmedabad | 6,507 | 7,176 | 7,335 | 2% | 13% |
| Bengaluru | 8,688 | 10,377 | 11,161 | 8% | 28% |
| Chennai | 7,653 | 7,710 | 7,690 | 0% | 0% |
| Delhi NCR* | 8,652 | 9,757 | 11,279 | 16% | 30% |
| Hyderabad | 10,530 | 11,323 | 11,290 | 0% | 7% |
| Kolkata | 7,315 | 7,727 | 7,745 | 0% | 6% |
| MMR* | 19,111 | 20,361 | 20,275 | 0% | 6% |
| Pune | 8,540 | 9,448 | 9,656 | 2% | 13% |
Source: Liases Foras, Colliers
All the prices are based on carpet area
*NCR- National Capital Region
**MMR- Mumbai Metropolitan RegionBadal Yagnik, Chief Executive Officer, Colliers, India says, “Notably, average housing prices have witnessed a consistent double-digit annual growth rate (12% in Q2 2024,) adding buoyancy to the sustained growth story in residential real estate. Additionally, the upcoming festive season will further invigorate the housing market with heightened sales and new launches. We thus envisage a strong finish for the housing market in 2024.”
Unsold inventory declined in seven out of the eight cities on quarterly basis
Apart from the Mumbai Metropolitan Region (MMR), unsold inventory levels declined by up to 5% on a quarterly basis across all cities under review. At 5%, Kolkata saw the highest sequential decline in unsold inventory levels followed by Pune with a 3% dip. As of Q2 2024, there was an availability of over 10 lakh housing units across the primary market of eight major cities, with MMR alone having about 40% share in unsold inventory levels, as per the report.”While MMR witnessed healthy sales in residential units during Q2 2024, a significant surge in new launches led to a marginal rise in unsold units. On an annual basis with a 13% YoY drop, Pune particularly witnessed the highest annual decline in unsold units. Annual decline in unsold inventory levels have been significant in Ahmedabad, Chennai and Kolkata too with 6-8% drop,” the report added.
Vimal Nadar, Senior Director and Head of Research, at Colliers India says, “Within the residential market, demand growth has been the strongest in luxury and ultra-luxury segments including second and vacation homes which is evident with price growth in select micro-markets of Delhi NCR and Bengaluru. Average housing prices for spacious dwelling units, particularly 3-4BHK configurations in these cities have increased up to 30% on an annual basis. Additionally, the government’s recent partial rollback pertaining to long term capital gains arising out of the sale of land and buildings retrospectively is expected to boost investors and homeowners’ sentiment and thus, the real estate sector at large.”
