The Indian housing market continued its upward trajectory in 2024, with average housing prices across the top eight markets witnessing a 10% year-on-year (YoY) increase in the last quarter of the year. The rise was fueled by strong demand momentum and positive market sentiment, marking the 16th consecutive quarter of price appreciation since 2021.
Among the major cities, Delhi NCR recorded the highest price growth at 31% YoY, followed by Bengaluru at 23%. The luxury and ultra-luxury segments, in particular, have gained significant traction, and this trend is expected to continue into 2025.
Housing Prices on a Steady Rise
Data from Liases Foras and Colliers indicate that all eight major cities recorded an increase in residential prices in Q4 2024. Delhi NCR witnessed the steepest rise, with Dwarka Expressway leading at a 58% annual increase, followed by Greater Noida at 52% YoY growth. Bengaluru also experienced significant growth, particularly in its Periphery & Outer West micro-markets, where ready-to-move-in units saw strong demand.
Pan India Residential Price Trends (INR/sq ft) – Q4 2024:
| City | Average Price (Q4 2023) | Average Price (Q4 2024) | YoY Change |
|---|---|---|---|
| Ahmedabad | 6,737 | 7,725 | 15% |
| Bengaluru | 9,976 | 12,238 | 23% |
| Chennai | 7,701 | 8,141 | 6% |
| Delhi NCR | 9,170 | 11,993 | 31% |
| Hyderabad | 11,083 | 11,351 | 2% |
| Kolkata | 7,912 | 7,971 | 1% |
| MMR | 20,047 | 20,725 | 3% |
| Pune | 9,185 | 9,982 | 9% |
Decline in Unsold Inventory
For the fourth consecutive quarter, overall unsold inventory levels declined, dropping 5% YoY by the end of Q4 2024. Notably, Pune saw the highest decline at 14%, followed by Hyderabad at 13%. The Mumbai Metropolitan Region (MMR) accounted for nearly 40% of the total unsold inventory, but for the first time in three years, it saw a reduction to 390,000 units.
Market Insights from Industry Experts
According to Boman Irani, President of CREDAI National, “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.”
Badal Yagnik, CEO of Colliers India, added, “Luxury and ultra-luxury housing segments have been key drivers of price growth. With potential reductions in interest rates and government initiatives to support affordable housing, demand across categories is expected to remain strong in 2025.”
Future Outlook
The residential market is poised for continued growth in 2025. The combination of infrastructure developments, evolving buyer preferences, and a strong luxury housing market is expected to keep prices on an upward trajectory. Additionally, a potential reduction in benchmark lending rates could further boost affordability, making it an opportune time for homebuyers to invest in real estate.
With steady demand, declining unsold inventory, and rising prices, India’s real estate market remains robust, signaling a promising year ahead for the housing sector.
Also Read: 2024 Warehousing Trends
