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Housing prices in top eight Indian cities continue to rise, at 11% YoY
Housing prices in top eight Indian cities continue to rise, at 11% YoY

January 14, 2025

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Average housing prices surged 11% YoY, 15th consecutive quarter of price increase starting 2021. Unsold inventory continued to drop on a quarterly basis, albeit still at high levels.

 

Average housing prices across the top eight markets in India rose 11% YoY at INR 11,000 per sq ft during Q3 2024, led by sturdy demand and positive market sentiments. Interestingly, average housing prices have increased for the 15th consecutive quarter since 2021. All the eight major cities saw an annual increase in housing prices with Delhi NCR witnessing the highest rise at 32% YoY, followed by Bengaluru at 24% YoY rise during the quarter. After registering record high sales over the last two years, the demand momentum across the top cities is stabilizing. Nevertheless, with anticipation of healthy residential activity in the last quarter, 2024 is likely to end on a strong note.  

Overall unsold inventory continued to witness a quarterly drop for the third consecutive quarter, led by healthy uptake in housing units. At the end of September 2024, unsold inventory stood at over 10 lakh housing units across the eight major cities, with MMR accounting for a majority at about 40% share. Notably, unsold units in Hyderabad saw a modest dip on a sequential basis despite a yearly increase of about 28%. 

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

 

Within the top cities, Delhi NCR saw the highest surge in housing prices at 32% YoY

Led by launches of select marquee projects within the luxury & ultra-luxury segment, housing prices in Delhi NCR increased 32% YoY, highest annual rise across the major cities. Within Delhi NCR, Dwarka Expressway and Golf Course Extension/Sohna Road witnessed a significant price appreciation of over 50% YoY, leading to a sharp rise in average housing prices at an overall level. Interestingly, compared to early years of the pandemic in 2020, average housing prices in the region have grown by about 75%, led by healthy traction in the luxury segment and continued demand for larger & spacious dwelling units.

Unsold inventory levels continued to drop for the third consecutive quarter

Although unsold inventory levels remained high, it continued to witness a quarterly drop for the third consecutive quarter. At 13%, Pune saw the highest decline in unsold inventory levels annually. Interestingly, it was the fifth consecutive of drop in inventory levels for the city. Annual decline in unsold inventory levels have been significant in Chennai and Kolkata too with 7-9% drop. Interestingly, 7 out of 8 cities saw a dip in unsold inventory levels, on a quarterly basis. 

Read more in our Research Report here.


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

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