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Buoyant demand drives average housing prices, 10% YoY growth across eight major Indian cities: CREDAI – Colliers - Liases Foras
Buoyant demand drives average housing prices, 10% YoY growth across eight major Indian cities: CREDAI – Colliers - Liases Foras

February 27, 2025

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Housing prices on the upswing for the 16th consecutive quarter. Delhi NCR saw more than 30% annual housing price rise, highest rise amongst top 8 Indian cities.

 


Mumbai, India, 25 February 2025: Average housing prices across the top eight markets in India witnessed a 10% YoY rise during the last quarter of 2024, led by healthy demand momentum and positive market sentiment. Interestingly, average housing prices have been on a rising spree for the 16th consecutive quarter, starting 2021. Price appreciation was evident in all the eight major cities, with Delhi NCR witnessing the highest rise at 31% YoY growth, followed by Bengaluru at 23% YoY rise during Q4 2024. While affordable housing segment will continue to form the bulk of housing sales, demand within luxury and ultra-luxury segments can amplify further in 2025. Traction in these segments is likely to drive average housing prices upwards across most major residential markets of the country in the next few quarters.

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.

 

 

Pan India residential price trends (in INR/sq ft) – 

 

 

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. 

 

  

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Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

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