India’s Top 8 Cities See 10% YoY Housing Price Rise in Q4 2024: CREDAI, Colliers, Liases Foras Report
As per, Housing Price-Tracker Report of, CREDAI, Colliers, Liases Foras, Q4 2024 saw a 10% year-on-year rise in average housing prices across India’s top eight markets, driven by strong demand momentum and positive market sentiment. Marking the 16th consecutive quarter of price appreciation since 2021, this growth was evident across all major cities. Delhi NCR led with a 31% YoY increase, followed by Bengaluru at 23%. While affordable housing remains the largest segment, rising demand in luxury and ultra-luxury categories is expected to push prices higher across key residential markets in 2025.
Overall unsold inventory continued to decline for the fourth consecutive quarter and dropped 5% annually during Q4 2024 backed by healthy demand. At the end of December 2024, unsold inventory at the India level stood below 10 lakh housing units for the first time in the last two years. MMR, with a share of ~40%, continued to account for a majority of the unsold inventory. Notably, Pune saw the highest annual drop in unsold inventory at 14%, closely followed by Hyderabad with 13% decline.
Mr. Boman Irani, President of CREDAI National stated, “The sustained growth in housing prices underscores the strong confidence among homebuyers, driven by a preference for spacious living and lifestyle upgrades. With evolving consumer aspirations, we are witnessing increased demand for larger homes, better amenities, and integrated living spaces. This positive sentiment has translated into steady sales momentum across segments. While evolving preferences and lifestyle upgrades remain key motivators, cost pressures in construction and land acquisition are also significantly contributing to pricing trends. As we look ahead, a potential reduction in interest rates could further boost affordability and drive even greater demand. This positive trend is expected to continue and thrive through the year, making it an opportune time for homebuyers to invest in real estate."
"Overall housing prices across the top eight Indian cities surged 10% on an annual basis in 2024. Prominent markets such as Delhi NCR and Bengaluru saw the steepest rise in average housing prices amidst rise in demand for luxury and ultra-luxury segments. Furthermore, the recent repo rate reduction along with government initiatives to fund stressed residential projects will provide boost to affordable housing segment. Going ahead, with elbowroom for further reduction in benchmark lending rates, most cities are likely to witness traction in housing sales across categories. Resultantly, average residential prices can potentially increase at similar levels in 2025 on an annual basis, " added, Badal Yagnik, Chief Executive Officer, Colliers, India.
All the prices are based on carpet area.
“Sales witnessed a marginal decline, led by moderated new launches in the last quarter. We anticipate a growth in affordable and mid-segment supply and sales going forward, which will change the composition of supply, which has been skewed towards the luxury segment for the last four years”, said Pankaj Kapoor, Managing Director, Liases Foras.
Within the top cities, Delhi NCR saw the highest rise in housing prices at 31% YoY
Delhi NCR witnessed the highest rise amongst India's top eight cities, with average housing prices soaring by 31% YoY. This price rise in the city is attributable to the strong sales momentum particularly in luxury & ultra-luxury segments. While Dwarka Expressway witnessed the highest annual price rise at 58%, Greater Noida too witnessed impressive growth of 52% YoY. Going forward, the upcoming Jewar International Airport, will continue to spur residential prices in the catchment areas.
Moreover, annual price appreciation was notable in Bengaluru, Ahmedabad and Pune as well, led by healthy demand spurred by infrastructure upgrades in key areas of these cities. Prominent micro markets such as Periphery & Outer West in Bengaluru, and Baner & Nagar Road in Pune saw significant traction in ready to move-in units. Resultantly, average housing prices in these micro markets increased by up to 15% YoY during Q4 2024.
Pune witnessed highest YoY drop in unsold units at 14%, MMR witnessed a drop in inventory levels after nearly 3 years
During Q4 2024, all the top eight Indian cities saw a decline in unsold inventory levels. Pune experienced the sharpest drop at 14% YoY, closely followed by Hyderabad at 13%. Chennai and Kolkata too recorded a 7-10% YoY decrease. Interestingly, unsold inventory levels in the MMR dropped after almost three years to around 390,000 units at the end of 2024.
“The demand for luxury and ultra-luxury segments was particularly strong throughout 2024. The share of spacious dwelling units in overall housing sales have been on the rise, particularly in cities such as Bengaluru, Delhi NCR and Pune. Average housing prices of 3-4BHK apartments in these cities increased by up to 34% YoY during Q4 2024. Evolving lifestyles, desire for upscale amenities, a growing population of HNIs, and perception of luxury properties as status symbols & investment opportunities will continue to drive housing sales in premium categories in the next few quarters,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
Way Forward
The momentum in housing prices is expected to continue in 2025, driven by sustained demand across segments, infrastructure upgrades, and evolving buyer preferences. A potential reduction in interest rates, coupled with government initiatives for stressed projects, could further boost affordability and sales. Luxury and ultra-luxury segments will remain key growth drivers, while a renewed focus on affordable and mid-segment housing may shape future supply trends. With declining unsold inventory and steady price appreciation, the residential market outlook remains strong for the next quarter.
