The Indian real estate market continues to witness remarkable growth, with average housing prices across the top eight cities rising 11% year-on-year (YoY) to ₹11,000 per square foot in Q3 2024, driven by robust demand and optimistic market sentiments. Among these cities, Delhi-NCR recorded the highest price increase at 32% YoY, followed by Bengaluru at 24% YoY, as highlighted by the Colliers-Liases Foras Housing Price Tracker for Q3 2024.
Delhi-NCR leads price growth with luxury segment boost
In Delhi-NCR, marquee luxury and ultra-luxury projects have contributed to the steep 32% YoY price hike, marking the sharpest annual rise among major cities. Dwarka Expressway and Golf Course Extension/Sohna Road emerged as the hotspots, reporting price appreciations exceeding 50% YoY. Compared to the pandemic’s early years, average housing prices in Delhi-NCR have surged by 75%, reflecting a growing demand for larger, premium homes.
Bengaluru and other cities witness steady growth
Bengaluru ranked second with a 24% YoY increase in housing prices, driven by sustained demand and urban expansion. Other cities, including Hyderabad, Chennai, and Pune, also saw steady growth. While markets like MMR, Pune, and Hyderabad appear to be nearing stabilization, Tier 2 cities are poised for a surge in new launches, catering to the growing demand.
Market sentiments remain optimistic
The ongoing price increases reflect positive buyer sentiment and a conducive market environment. Boman Irani, President of CREDAI National, noted, “We are seeing more aspirational buyers opt for bigger, more luxurious homes. This robust momentum is expected to continue into the new year.”
Similarly, Badal Yagnik, CEO of Colliers India, emphasized, “Developers are recalibrating strategies to meet consumer demands. The likely easing of monetary policies could further encourage homebuyers.”
Decline in unsold inventory
The market’s health is also evident in the declining unsold inventory, which dropped for the third consecutive quarter. At the end of September 2024, over 10 lakh unsold housing units were reported across the eight major cities, with MMR accounting for 40%. Pune led with a 13% annual decline in inventory levels, marking its fifth consecutive quarter of reduction.
Future outlook for Indian Real Estate
Experts predict continued growth, especially in the luxury and premium housing segments, supported by strategic launches and improved connectivity. Flexible payment plans and incentives are expected to sustain buyer interest, ensuring a positive trajectory for the Indian real estate market.
