India, December 2, 2024:
Housing prices in India’s top eight cities rose by 11% year-on-year (YoY) during Q3 2024, marking the 15th consecutive quarter of price increases since 2021. The average price reached INR 11,000 per square foot, driven by strong demand and a positive market outlook. This sustained price growth has been observed across all major cities, with Delhi NCR leading the charge at 32% YoY, followed by Bengaluru at 24%.
Despite a record surge in housing sales over the past two years, demand is now stabilizing. However, experts predict strong residential activity will continue, potentially closing 2024 on a high note. Housing prices in cities like Delhi NCR and Bengaluru have seen significant hikes, reflecting consumer preference for larger, more spacious homes. Delhi NCR, in particular, saw a remarkable 32% YoY increase, driven by the launch of luxury and ultra-luxury projects, with areas like Dwarka Expressway and Golf Course Extension seeing price hikes of more than 50%.
Drop in Unsold Inventory
Unsold inventory has continued to decline for the third consecutive quarter, with a reduction in stock across most cities. As of September 2024, unsold inventory stood at over 10 lakh units across the top eight cities, with MMR (Mumbai Metropolitan Region) holding the largest share of 40%. Hyderabad saw a modest decline in unsold units, while Chennai and Kolkata also reported a drop in inventory levels. Pune experienced the largest decrease in unsold inventory, with a 13% YoY reduction.
Outlook for the Housing Market
While the market is gradually stabilizing, the outlook for residential properties remains positive. Developers are recalibrating their strategies, focusing on price-sensitive segments, and offering compact units. The expectation of potential repo rate cuts and easing monetary policies is expected to bring relief to homebuyers in the near future. Additionally, flexible payment plans and incentives are helping maintain sales momentum.
Real Estate Price Trends in Major Cities
Here’s a snapshot of the average housing prices in the top eight cities for Q3 2024:
| City | Average Price (INR/sq ft) | QoQ Price Change | YoY Price Change |
|---|---|---|---|
| Ahmedabad | 7,640 | 4% | 16% |
| Bengaluru | 11,743 | 5% | 24% |
| Chennai | 7,889 | 3% | 2% |
| Delhi NCR | 11,438 | 1% | 32% |
| Hyderabad | 11,351 | 1% | 3% |
| Kolkata | 7,616 | -2% | 3% |
| MMR | 20,438 | 1% | 4% |
| Pune | 9,890 | 2% | 10% |
The ongoing rise in prices, particularly in luxury housing segments, highlights strong demand from aspirational homebuyers. As developers focus on larger homes and premium offerings, they are addressing market dynamics that reflect current consumer preferences.
Developer Strategies and Market Trends
With an eye on the luxury and ultra-luxury segments, developers are adjusting their strategies based on shifting demand. In cities like Bengaluru and Delhi NCR, large, spacious units, especially 3-4 BHK configurations, have seen price hikes of up to 26% YoY during Q3 2024. While affordable housing inventory remains high, new launches are largely focused on the premium end of the market.
The overall outlook for the housing sector remains strong, supported by positive consumer sentiment, steady demand, and the anticipation of financial relief through policy changes.
Also Read: MahaRERA Invites Objections to De-Registration of Macrotech and Raheja Projects Along with 17 Others
