Synopsis
In Q4 2024, average housing prices in India's top eight cities rose by 10% year-on-year, marking 16 consecutive quarters of growth. Delhi-NCR saw the highest increase at 31%, with Bengaluru following at 23%. Demand for affordable housing remains strong, while luxury segments may also see growth in 2025.Key Takeaways
- 10% increase in housing prices across eight major cities.
- Delhi-NCR led with a 31% rise.
- Luxury housing demand expected to grow in 2025.
- Unsold inventory dropped 5% annually.
- Potential interest rate cuts could enhance affordability.
Mumbai, Feb 25 (NationPress) Driven by robust demand and favorable market conditions, average housing prices in the top eight cities of India experienced a 10 percent increase (year-on-year) in the last quarter of 2024, according to a report released on Tuesday.
This marks the 16th consecutive quarter of rising prices, a trend that began in 2021.
Every one of the eight major cities showed price appreciation, with Delhi-NCR reporting the highest increase at 31 percent YoY, while Bengaluru followed with a 23 percent rise during Q4 2024, as noted in the report by CREDAI-Colliers-Liases Foras.
The affordable housing segment is expected to continue dominating sales, yet the demand for luxury and ultra-luxury properties may see significant growth in 2025, the report highlighted.
The overall unsold inventory has also been decreasing for the fourth consecutive quarter, dropping by 5 percent annually in Q4 2024 due to strong demand.
By the end of December, the total unsold inventory in India fell below 10 lakh housing units for the first time in two years.
The Mumbai Metropolitan Region (MMR) accounted for 40 percent of the unsold inventory.
In terms of annual declines, Pune experienced the steepest drop in unsold inventory at 14 percent, closely followed by Hyderabad with a 13 percent decline.
This sustained increase in housing prices reflects strong confidence among homebuyers, fueled by a desire for more spacious living and lifestyle improvements, according to Boman Irani, President of CREDAI National.
With changing consumer expectations, there is a rising demand for larger homes, enhanced amenities, and integrated living spaces.
“Looking forward, a potential decrease in interest rates could enhance affordability and stimulate even greater demand. This encouraging trend is anticipated to continue throughout the year, creating a favorable environment for homebuyers to invest in real estate,” Irani stated.
Moreover, the recent reduction in the repo rate, coupled with government initiatives to support distressed residential projects, is expected to invigorate the affordable housing sector.
“As we move forward, with further possibilities for cuts in benchmark lending rates, most cities are likely to see an uptick in housing sales across all categories. Consequently, average residential prices may rise at similar rates in 2025 on an annual basis,” said Badal Yagnik, CEO of Colliers, India.
