A recent Reuters poll among 16 property market experts has forecast a notable rise in house prices across India for 2024, with an expected increase of 7.8 percent. This anticipated growth is nearly double the rate observed in 2023 and is largely driven by a surge in demand for luxury residential real estate. However, the forecast suggests that the demand for more affordable housing will likely remain unmet due to lower profit margins for real estate developers.
Price Trends Across Major Cities
The latest Housing Price Tracker, published by CREDAI (Confederation of Real Estate Developers’ Associations of India) in collaboration with Colliers and Liases Foras, reveals significant variations in house price trends among India’s largest cities. According to the report:
- Bengaluru, Hyderabad, and the National Capital Region (NCR), which includes Delhi, Faridabad, and Gurugram, have experienced a dramatic increase in average house prices, rising by over 50 percent from January-March 2019 to the second quarter of 2024.
- In Mumbai Metropolitan Region, house prices have remained stable compared to five years ago. Although prices were lower by five percent in the second quarter of 2023 compared to Q1 2019, the market has since stabilized.
Year-Over-Year Changes
The year-over-year data highlights:
- Delhi and the NCR saw the highest increase in house prices, with a 30 percent rise from the second quarter of 2023, driven primarily by luxury real estate projects.
- Bengaluru follows with a 28 percent increase, while Ahmedabad and Pune each saw a 13 percent rise.
- The remaining top cities have experienced more modest price changes, staying well below the ten percent increase threshold.
Expert Insights
The Reuters poll underscores a trend of rising house prices, particularly in the luxury segment. The demand for high-end properties continues to outpace that for affordable housing, which remains constrained by developer profit margins.
Also Read: Mumbai Real Estate Market Sees Record Highs in Property Prices
Credit and Sources
The data for this report is sourced from the Housing Price Tracker by CREDAI, in association with Colliers and Liases Foras. The Reuters poll provided insights into the expected price growth for 2024.
