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:

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

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The event, which brought together key industry leaders, also highlighted key insights about Greater Mumbai’s real estate landscape, including pricing trends, transaction volumes, and inventory levels. The research points to the significant impact of economic shifts, regulatory changes, and evolving consumer preferences on the region’s real estate dynamics, with affordability emerging as a key concern.

Key Findings from the Report:

• The average price per square foot (PSF) in Greater Mumbai stands at ₹32,150.
• 29% of homes sold are priced above ₹2 crore, reflecting the rise in luxury and high-end property transactions.
• Affordability in Greater Mumbai is the lowest among major Indian cities for the affluent-middle class.

Prashant Sharma, President of NAREDCO Maharashtra, highlighted the urgency for regulatory reforms, calling for the rationalization of premiums and streamlining of approval processes to address market challenges. “To succeed, we need strong collaboration between the public and private sectors,” he emphasized, noting NAREDCO Maharashtra’s commitment to affordable housing initiatives.

The report also highlights that, despite affordability concerns, real estate remains a robust asset class, delivering an average return of 12% over the past decade—comparable to gold and outperforming debt investments.

Keval Bhanushali, Co-founder & CEO of 1 Finance, stressed the importance of integrating real estate advisory into India’s financial planning ecosystem. “This report is a crucial step toward establishing real estate as a legitimate investment class alongside other traditional options,” he said, adding that the findings offer valuable insights for homeowners, developers, and policymakers alike.

Ridham Gada, President of NAREDCO Maharashtra NextGen, called for a collaborative approach between developers, policymakers, and financial institutions to address the affordability crisis. He emphasized the need for innovation and regulatory reforms to ensure accessible homeownership in Greater Mumbai.

The Path Forward
The research makes it clear that affordability in Greater Mumbai is a major concern that requires immediate attention. To address these challenges, the report advocates for long-term urban planning, sustainable development policies, and collaborative efforts between the public and private sectors. These steps are essential to ensuring that homeownership remains attainable for residents, even as Mumbai continues to grow as a global metropolis.

As Mumbai’s real estate market evolves, the findings from this research provide a critical roadmap for tackling the city’s housing issues while promoting inclusive growth and sustainability.

Also Read: Lifestyle Amenities Redefine Luxury in Delhi-NCR’s Real Estate Market

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State Housing Minister Atul Save on Wednesday confirmed that former Central Minister Dr. Bhagwat Karad declined the offer of a MHADA home, citing the steep prices. This follows a similar decision by BJP MLA Narayan Kuche, who had won the most expensive home in the 2023 MHADA lottery. The property, located at Crescent Towers, Tardeo, was priced at ₹7.57 crore and was allocated to Kuche through the MP/MLA quota. Kuche’s victory had initially displaced Karad, who was then serving as a central minister in the Modi cabinet.

Despite securing the home in the lottery, Kuche decided not to proceed, stating that the property’s cost was beyond his means. Under MHADA rules, if a winner declines their allotted home, the next person on the waiting list is given the opportunity. In this case, that person was Bhagwat Karad. However, Karad also chose to forgo the home, citing the same concern over the high price.

In response to significant public backlash over the high prices of homes in the MHADA lottery, the Maharashtra Housing and Area Development Authority (MHADA) has announced a 10% reduction in prices for High Income Group (HIG) homes. The price adjustment follows criticism from citizens about the affordability of homes in the recent lottery, which initially offered 2030 properties.

The new pricing will apply to 370 homes advertised under the DCPR 33 & 5 guidelines, including the property initially won by Kuche and subsequently refused by both leaders. The price reductions are as follows: 25% for Economically Weaker Sections (EWS), 20% for Low Income Group (LIG), 15% for Middle Income Group (MIG), and 10% for HIG homes.

MHADA’s decision to reduce prices aims to address the affordability concerns and provide a more equitable opportunity for potential buyers. The adjusted homes will be available in an upcoming lottery, offering renewed hope to those seeking housing in Mumbai.

Also Read: MHADA Reduces Prices for Homes in Mumbai Lottery

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In response to public feedback and criticism over the high prices of its homes, the Maharashtra Housing and Area Development Authority (MHADA) has announced a substantial reduction in the rates for 370 homes included in its latest lottery for Mumbai. This adjustment aims to make homeownership more accessible for a broader range of buyers.

Price Reductions Across All Income Categories

MHADA’s recent decision impacts homes under the 33(5) and 33(7) schemes. The authority has introduced price cuts in all four income categories, reflecting a commitment to address affordability concerns:

• Economically Weaker Sections (EWS): Prices have been reduced by 25%.
• Low Income Group (LIG): Prices are down by 20%.
• Middle Income Group (MIG): A 15% reduction has been applied.
• High Income Group (HIG): Prices have been cut by 10%.

These reductions come after MHADA faced significant backlash regarding the previously high prices of its homes. The move is expected to ease the financial burden on potential buyers across different economic strata.

Extended Application Deadline

To accommodate the increased interest and ensure more people can benefit from the reduced prices, MHADA has extended the application deadline. Originally set for September 4, the new deadline is now September 19. This extension provides additional time for prospective buyers to submit their applications for the lottery.

Introduction of MHADA’s New Mascot

The event also marked the unveiling of MHADA’s mascot, ‘Shri and Shrimati Nivasi.’ Housing Minister Atul Save highlighted that the mascot would serve as a goodwill ambassador, helping citizens navigate MHADA’s procedures and making information about housing schemes more accessible. Save praised the contributions of Chief Minister Eknath Shinde, Deputy Chief Ministers Devendra Fadnavis and Ajit Pawar for their support in the housing sector.

Enhanced Services and Future Plans

Sanjeev Jaiswal (IAS), MHADA Vice President and CEO, emphasized that ‘Shri and Shrimati Nivasi’ symbolize MHADA’s commitment to providing clear guidance and facilitating homeownership dreams. The mascot is expected to enhance the public’s understanding of MHADA’s schemes and services.

Jaiswal also highlighted the implementation of the IHLMS 2.0 system, a transparent online lottery system that simplifies the process from registration to possession of apartments. MHADA plans to integrate chatbox technology into its mascot system and expand its presence on social media platforms to better connect with the public.

Conclusion

With these adjustments, MHADA aims to address affordability concerns and make homeownership more attainable for Mumbai’s diverse population. The reduced rates and extended application deadline are steps towards enhancing accessibility and addressing the housing needs of various income groups in the city.

Also Read: Maharashtra Housing Minister to Unveil MHADA’s New Mascot on August 28

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 To say that India’s two leading realty hotspots NCR and MMR (Mumbai Metropolitan Region) have seen off-the-charts housing market activity in the last five years is an understatement. Record-breaking sales have caused unsold inventory to decline and average residential prices to soar by 49% in this period.

“Latest ANAROCK Research data finds that NCR recorded a 49% five-yearly jump in average residential prices between H1 2019 and H1 2024 – from INR 4,565 per sq. ft. to INR 6,800 per sq. ft.,” says Anuj Puri, Chairman – ANAROCK Group. “In MMR, average residential prices appreciated 48% in the period – from INR 10,610 per sq. ft. in H1 2019 to INR 15,650 per sq. ft. in H1 2024.”

Source: ANAROCK Research

The steep rise of housing prices in Delhi-NCR and MMR is attributable to steep hikes in construction costs as well as healthy sales. Prices in both regions had maintained status quo from late 2016 to 2019. Just when these two markets were beginning to see green revival shoots, the pandemic struck.

The COVID-19 pandemic was a boon for these two residential markets, causing demand to soar to new heights. Initially, developers induced sales with offers and freebies; but with demand heading north, they gradually increased average prices. Strong sales helped unsold inventory to decline in the period, especially in NCR.

“Paradoxically, the pandemic was an undisguised blessing for the National Capital Region,” says Puri. “Once infamous for high unsold inventory fed by speculative demand and supply, the region has seen a sharp decline of over 52% in its unsold stock in the last five years – from approx. 1.82 lakh units at H1 2019-end to approx. 86,900 units by H1 2024-end. Interestingly, the inventory overhang has reduced to 16 months in NCR in H1 2024 as against 44 months back in H1 2019.”

Conscious curtailment of fresh supply was a major factor that helped the region to clear its stock. ANAROCK data indicates that only about 1.72 lakh units were launched in NCR between H1 2019 and H1 2024.

Meanwhile, MMR’s current available stock is at approx. 1.95 lakh units. In the last five years, the region has seen a 13% decline in its unsold stock – largely on account of substantial new launches to meet resurgent demand. MMR has seen over 5.26 lakh units launched between H1 2019 and H1 2024 – thrice the new supply in NCR in this period. The inventory overhang in the region came down 14 months as of H1 2024-end from 34 months back in H1 2019-end.

Also Read: Prices of under-construction projects increase 15.2% QoQ across top 13 cities

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The under-construction projects in the top 3 cities have witnessed higher price appreciation up to 30% over the year compared to ready properties as new launches offered newer amenities and configurations. The continued price movement indicates strong demand in the premium housing market.

The heightened demand is further supported by the RBI that maintained interest rates for the sixth consecutive time which is expected to add momentum to the residential market.

The key trends these cities witnessed through the year:

Price trends:

Mumbai

• The rise in capital values for under-construction properties in Mumbai is sharper than ready properties that saw a 3% YOY rise compared to a 5% YOY increase for under-construction properties.
• The micromarkets of Central Mumbai and Western Suburbs (Others) witnessed a significant increase of 12%-21% YOY in capital values on account of new launches at prices higher than the existing market average.
• The market witnessed significant traction in demand for the luxury segment. Larger spaces in bungalows and prime residences were preferred due to the increasing trend of hybrid working, especially by professionals in the financial services industry as well as in legal domain.

Bengaluru

• Bengaluru’s premium residential market witnessed a growth of 5-6% YOY in capital values over the year. The under-construction projects saw higher growth averaging 7.2% YOY compared to about 5.2% YOY increase in newly completed projects as new projects were being launched at higher prices along with strong demand.
• Central Bengaluru has witnessed the highest growth in capital values in completed projects at 7.5% followed by 6.2% in East Bengaluru. The completion of the new metro route in Eastern Bengaluru and strong demand from HNIs in the Central Bengaluru have been the major driving factors for capital appreciation in these markets.  

Delhi

• The city overall witnessed an increase of 16% YOY in the average capital value of luxury floors.
• The micromarket of South-East Delhi witnessed the highest price appreciation of 27% on an annual basis for luxury floors. This is followed by the South-West micromarket which registered a YOY growth of 21%.
• The average capital values of residential plots witnessed a YOY growth of 25% at the city level. The South-Central and South-West micromarkets led this trend, with both recording the highest YOY growth rates at 29%

Gurugram

• The average capital values of completed and under-construction properties hit a fresh peak with 37% and 30% YOY growth registered at city level respectively. 
• New Gurugram & Dwarka Expressway were the top performing micromarkets with an annual growth of 53% and 34% respectively in average capital values of under construction properties.
• The city overall witnessed an increase of 26% YOY in the average capital value of residential plots. The Dwarka Expressway micromarket registered the highest price growth, with a 43% YOY increase.

NOIDA

• Average Capital values of completed and under-construction properties in NOIDA witnessed a significant YOY increase of 30% & 29% respectively.
• With 43% YOY growth, sector 150 micromarket witnessed the highest growth in capital value for under-construction properties.

North Goa

• Average capital values for villas in North Goa witnessed a steep rise of 28% YOY. This increase in prices is attributed to its rising popularity among homebuyers as a second home location owing to high rental yields, a growing preference for gated villas and a demographic shift towards younger, lifestyle-focused buyers.
• The market is witnessing a trend of young professionals, especially from major cities like Mumbai, Delhi and Bengaluru, moving to Goa. These professionals often work in creative fields or are digital nomads seeking a better work-life balance.
• Homebuyers preferred gated villas along the coastal belt locations, such as Anjuna, Arpora, Baga, Calangute, Candolim and Vagator.
• Due to rising land prices, the supply of villas in North Goa has seen a tremendous shift. The standard sizes of villas have shrunk to almost half from 5,400 sq ft. to 2,700 sq ft. over the past five years.

Rental trends

Mumbai

• All micromarkets witnessed an increase in rental values, estimated in the range of 3%-8% YOY. The rise in rental values can be partly attributed to pent-up demand for rental properties due to redevelopment of dilapidated buildings in the city.
• The market gained momentum as end-users increasingly considered leasing larger homes in projects with amenities.
• Properties located near metro stations witnessed a substantial increase in rental values. The convenience of a quick and reliable commute to major business hubs and entertainment districts is highly sought after by homebuyers.

Bengaluru

• South and North Bengaluru saw a significant growth of ~3% YOY in rentals in premium residential developments.​Similarly, East and Central Bengaluru recorded a growth of ~2% YOY in premium properties.

Delhi

• The rental values increased by 31% YOY in H1 2024 at city level.
• South-Central micromarket witnessed the highest annual growth in rentals at 38% followed by the Central 1 micromarket which observed 36% YOY increase.

Gurugram

• Average rentals witnessed an increase of 18% YOY at city level.
• Dwarka Expressway and Golf Course Road saw the highest rise in rentals with 28% & 19% YOY growth, respectively.

NOIDA

• Sector 150 and NOIDA Others micromarkets with 12% YOY growth, saw the maximum hike in rentals in H1 2024.

New launches across key cities:

• Luxury unit launches in Delhi increased over 4X, with 1,300 new units launched in H1 2024.
• With approximately 9,500 luxury units, new launches in Gurugram increased 2X in H1 2024
• New launches of luxury units in NOIDA saw a significant increase, with approximately 2,200  units added in H1 2024.
• With 5,632 units launched in H1 2024 in the premium segment, Bengaluru saw a 156% YOY growth. East Bengaluru accounted for 55% of the new launches while North Bengaluru contributed 23%. 

Shveta Jain, Managing Director, Residential Services, Savills India said, “In H1 2024, the buyer sentiment was upbeat, with investor interest gravitated towards new launches, while end-users sought ready-to-move-in properties. Older developments in grade A corridors witnessed increased demand from both buyers and tenants. The velocity of sales was better for villas and apartments with large balconies and green patches. The 4-bedroom format also garnered more attention in the luxury segment, applicable to both primary and secondary markets. The increase in new launches in Gurugram and Delhi also reflects a growing appetite for luxury residences. Interestingly, discerning buyers also sought green buildings, reflecting a growing demand for upscale, sustainable living beyond traditional amenities.”

Also Read: Prices of under-construction projects increase 15.2% QoQ across top 13 cities

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 Inflation, the gradual increase in the general prices of goods and services, erodes the purchasing power of money over time. For investors seeking to preserve and grow their wealth amidst inflationary pressures, real estate has emerged as a popular hedge against this dreaded but inevitable dynamic, finds ANAROCK research.

Price growth over the last three elections

Shobhit Agarwal, MD & CEO – ANAROCK Capital, says, “After the 2019 elections, average residential prices across the top 7 cities have appreciated at a Compound Annual Growth Rate (CAGR) of 6% – rising from INR 5,600/sq.ft. in June 2019 to INR 7,550/sq.ft by the end of FY 2024. A similar trend was witnessed in relation to the 2014 elections. Average prices across the top 7 cities saw an annual rise of over 6% in 2014 when compared to the preceding year – from INR 4,895/sq.ft in 2013 to INR 5,168/sq.ft in 2014.”

Conversely, before the 2019 elections, average prices rose by a mere 1% annually, and remained rangebound during the tenure.

Source : ANAROCK Research, Data for Top 7 cities

Supply – Demand Dynamics

In the last decade, there were periods when the supply of real estate exceeded demand, resulting in stable price growth that kept pace with inflation in the pre-pandemic era. Between 2013-2020, the top 7 cities recorded a cumulative supply of 23.55 lakh units against a demand for 20.68 lakh units.

Gradually, demand rose in tandem with new supply. Available inventory peaked at approx. 8 lakh units by the end of 2016. However, following the pandemic, residential real estate saw rapid recover, leading to significant price growth that has outpaced general inflation.

Source: ANAROCK Research, Data for Top 7 cities

Real estate – a hedge against inflation

Inflation, the gradual increase in the general prices of goods and services, erodes the purchasing power of money over time. For investors seeking to preserve and grow their wealth amidst inflationary pressures, real estate has emerged as a popular hedge against this dreaded but inevitable dynamic.

Steady population growth coupled with urbanization consistently fuels housing demand. As more people migrate to cities for better opportunities, rising residential demand exerts upward pressure on prices.

Moreover, real estate investments can generate rental income, which potentially grows over time in response to inflation. As the cost of living rises, landlords typically adjust rental rates. Also, investors can leverage their real estate assets to borrow funds for further real estate acquisitions.

During inflationary periods, the cost of borrowing (interest rates) typically rises. However, investors who have secured fixed-rate financing before inflationary pressures set in can benefit from lower borrowing costs in real terms, enhancing the profitability of real estate investments.

“Real estate investments offer diversification benefits within a portfolio,” says Agarwal. “Unlike financial assets such as stocks and bonds, which may be negatively impacted by inflationary pressures, real estate – including residential, commercial, and retail – provides a tangible asset with intrinsic value. Diversifying investment portfolios with real estate holdings can mitigate overall portfolio risk and enhance long-term returns.”

Residential real estate prices have risen continuously since 2013, and in the last two years, appreciated at a CAGR of 13% while CPI inflation moderated by 1.3% on an annual average basis to 5.4% at the end of FY24. This trend signifies a clear outperformance of real estate prices compared to inflation.

With tangible real estate, in response to growing investor demand for inflation protection, financial instruments such as real estate investment trusts (REITs) and inflation-linked bonds have gained popularity. REITs, which invest in income-generating real estate, offer investors exposure to the real estate market coupled with liquidity and diversification benefits. Similarly, inflation-linked bonds adjust their principal and interest payments based on changes in inflation rates.

Also Read: Home Prices To Go Up Or To Remain The Same?

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Demand for spacious units remained high, with average 3 & 4BHK prices increasing up-to 25% YoY across cities

Pune saw the highest annual drop in unsold inventory at 10% YoY followed by Delhi NCR and Ahmedabad

Amidst sustained positive sentiment in residential real estate, average housing prices surged by 10% annually during Q1 2024. While each of the top eight cities witnessed annual price appreciation, average housing prices in Bengaluru, Delhi NCR, Ahmedabad, and Pune registered double digit growth. On a quarterly basis too, housing prices across majority of the cities witnessed a noticeable 2-7% increase.

Although the market continued to be largely favorable for both homebuyers and developers, unsold inventory at an India level witnessed a marginal 3% YoY increase. Notably, Pune led with a significant 10% YoY drop in unsold inventory, closely followed by Delhi NCR and Ahmedabad, each recording an 8% annual reduction. As of Q1 2024, unsold inventory across the top eight cities stood close to 10 lakh units, with MMR alone having almost a 40% share. Interestingly, robust demand momentum led to a slight drop in unsold units on quarterly basis. Although, Hyderabad and Bengaluru witnessed yearly increases in unsold inventory, both cities saw a slight quarterly dip. Developers are likely to keep a close watch on available stock and anticipated demand while timing their new launches in the near-term.

Mr. Boman Irani, President of CREDAI National stated, “The surge in housing prices is a direct consequence of the robust housing demand that we’re witnessing – especially in premium and luxury housing – by homebuyers across the country. These are directly linked to not just a stable lending eco-system but also the emergence of various micro-markets that have been the primary beneficiaries of significant infrastructural projects – which has altered the demand-supply dynamics in residential real estate and we do not foresee this momentum to slow down in FY24/25 as well.”

“Residential real estate in India continued to benefit from positive sentiments in the first quarter of 2024, with average housing prices increasing by an impressive 10% on an annual basis. This upward trend reflects the resilience and dynamism of the residential sector, buoyed by factors such as stable repo rates and infrastructure upgrades across most of the major Indian cities. With prospects of reduction in benchmark lending rates in the ongoing fiscal year, affordability can improve in the near term, especially for the EMI dependent home buyers”, added, Badal Yagnik, Chief Executive Officer, Colliers, India   

Pan India residential price trends (Q1 2024) (in INR/sq ft) –

Source: Liases Foras, Colliers

All the prices are based on carpet area

*NCR- National Capital Region

**MMR- Mumbai Metropolitan Region

“In the top 8 cities of India, property prices have seen a notable 10% year-on-year increase, alongside strong sales, and new supply introductions.Bengaluru leads with a 19% spike in housing prices, followed by significant escalations in Delhi NCR, Hyderabad, and Pune. Factors like luxury demand, upcoming infrastructure projects, and strategic launches drive these increases. With moderate inflation and interest rates, the real estate sector is expected to maintain demand due to affordability. The prices could increase by 10-15%, bridging the gap between affordability and inflation-adjusted prices”, said Pankaj Kapoor, Managing Director, Liases Foras.

At 19% YoY increase, Bengaluru saw the highest price rise across top eight cities

Bengaluru witnessed the most significant annual price surge among India’s top eight cities, with prices soaring by 19%. Within Bengaluru, the Periphery and Outer East micro market saw the steepest upward movement at 32% YoY increase. It was followed by the Periphery and Outer North with 18% annual growth in average housing prices. Key IT hubs like Whitefield and KR Puram witnessed notable demand for spacious units, particularly 3BHK and 4BHK configurations.

In Delhi NCR, housing prices saw a substantial annual increase of 16%, with Dwarka Expressway, notably witnessing a 23% increase in average capital values. With significant number of new launches, the trend is likely to continue in residential catchment areas along Dwarka Expressway throughout 2024.

Unsold inventory in Pune witnessed the steepest drop at 10% YoY

Of the eight major cities, Pune witnessed the steepest drop in unsold inventory levels. The 10% YoY decline in unsold units, highlights strong housing demand across the city. The reduction in unsold units coincides with a major 13% annual rise in average housing prices. This price growth was driven by substantial launches in the high-end and luxury segments. Key localities like Camp and Baner witnessed significant YoY price increases, ranging between 20-23%. Going ahead, with continued progress on key infrastructure projects such as Metro Line 3 & Pune Ring Road, and completion of marquee Grade A commercial developments, areas like Baner, Chinchwad, Shivaji Nagar, and Nagar Road are likely to witness high residential activity in the near to mid-term.

“Demand for housing units across categories, especially luxury and ultra-luxury segments has remained upbeat for the last few quarters. While Mumbai and Delhi have been featured regularly in the global list of cities with highest millionaires, Bengaluru promises to be a fast-emerging city in terms of wealth accumulation and growth in millionaire population. As a growing economic hub, Bengaluru has seen significant launches in luxury residential projects, especially in the Periphery & Outer North micro market. Residential developers are likely to further capitalize on the growing demand in the luxury/ultra-luxury segment and launch more upscale projects catering to the discerning tastes of affluent homebuyers,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Also Read: Luxury Sales Share At 21% from 7% in 5 Years, Affordable Housing Down to 20% From 37%

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●           Aggregate residential demand increased 6.9% QoQ, supply increased 0.9% QoQ and prices increased 2.9% QoQ across the 13 cities

In 2023, residential prices increased consistently, making relatively affordable under-construction properties more attractive for investment and home ownership, reveals the latest PropIndex report by Magicbricks, India’s leading real estate platform.

The report underscores a notable surge in demand for under-construction properties, increasing 7.8% QoQ between January and March 2024. As a result, prices experienced a corresponding uptick, growing 1.7% QoQ and a significant 30.6% YoY. This momentum follows a previous increase of 6.32% QoQ recorded between October and December 2023, indicating a sustained positive trend in the market.

Cities such as Noida (7.1% QoQ), Greater Noida (6.1% QoQ), Bengaluru and Mumbai (5.7% QoQ each) witnessed the most substantial price increments in under-construction properties.

Explaining the trends, Abhishek Bhadra, Head of Research, Magicbricks shared “Historically, homebuyers have often favored completed projects over new developments. But against the backdrop of increasing residential prices in 2023, there emerged a discernible shift in preference towards relatively more affordable under-construction properties. Consequently, prices of under-construction properties are on the rise as well. In response to this evolving demand, we have observed that developers are swiftly expediting the completion of under-construction projects and launching new ones.“

Furthermore, the report shed light on a notable trend towards 2BHK units, also likely influenced by the increasing residential prices across various cities. According to Magicbricks, the demand share of 2BHK units increased from 32% (between October and December 2023) to 42% (between January and March 2024).

This trend was particularly pronounced in cities such as Bengaluru (rising from 29% to 45%), Noida (increasing from 11% to 33%), and Navi Mumbai (from 18% to 54%) where demand for 2BHKs grew considerably during these respective periods.

“While we anticipate residential demand to continue increasing, albeit at a slower pace, there are promising signs indicating an increase in residential supply in the upcoming quarters. Consequently, we expect prices to stabilize, showcasing the market’s resilience in the face of evolving dynamics,” concluded Abhishek Bhadra.

The report highlights a continued uptrend in aggregate demand across the top 13 cities between January and March 2024, registering a robust growth of 6.9% QoQ. Moreover, after a period of relatively subdued supply, there has been a modest 0.9% QoQ increase this quarter. Despite this, the demand continues to outstrip supply, resulting in a 2.9% QoQ increase in residential prices across these 13 cities. Noida (7.4% QoQ), Greater Noida (7.2% QoQ), and Chennai (5.5% QoQ) recorded the highest appreciation in property prices.

Also Read: Housing prices surged ~20% from 2021 to 2023

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The bull run in the Indian housing market continued in the first quarter of the year. Quarterly housing sales are at an all-time decadal high with approx. 1,30,170 units sold in Q1 2024 across the top 7 cities, reveals latest ANAROCK data. This is a 14% yearly rise against approx. 1,13,775 units sold back in Q1 2023.

Anuj Puri, Chairman – ANAROCK Group, says “MMR and Pune accounted for over 51% of the total sales in the top 7 cities, with MMR recording a 24% yearly jump and Pune witnessing an over 15% yearly rise. New launches across the top 7 cities continued above the one lakh mark but witnessed a mere 1% yearly rise – from 1,09,570 units in Q1 2023 to over 1,10,865 units in Q1 2024.”

“Notably, MMR and Hyderabad saw the maximum new supply, accounting for 51% of the total new launches across the top 7 cities,” says Puri. “Hyderabad saw a 57% yearly increase in new supply in Q1 2024, while MMR saw its new supply decline by 9% in the period. The quarter has recorded the highest ever sales in the last decade amid a significant rise in demand for high-ticket priced homes priced INR 1.5 Cr and above.”

Despite new launches remaining above the 1 lakh mark in this quarter, available inventory in the top 7 cities dropped by 7% annually – from approx. 6,26,750 units by Q1 2023-end to approx. 5,80,890 units by Q1 2024-end. Among the top cities, NCR saw highest decline of 27% in its unsold stock in Q1 2024. NCR’s unsold stock is currently lower than in other prominent cities like MMR, Pune, and Hyderabad.

India’s overall economic scenario remains positive, with the country’s GDP growth rate pegged as the highest globally, and inflation also seems to be under control. This outlook supports enduring homebuyer sentiment.

New Launch Overview

The top 7 cities recorded new launches of around 1,10,865 units in Q1 2024 against 1,09,570 units in Q1 2023, increasing by just 1% over the previous year’s corresponding period. The key cities contributing to new launches in Q1 2024 were MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, which together accounted for 83% of the quarter’s supply addition.

• MMR saw approx. 33,800 units launched in Q1 2024 – a decline of approx. 9% over Q1 2023. More than 59% of the new supply was added in the sub-INR 80 lakh budget segment.
• Hyderabad added approx. 22,960 units in Q1 2024 – a yearly jump of 57% over the corresponding period last year. Over 33% of the new supply was added in the high-ticket >INR 1.5 Cr) price segment.
• Pune added approx. 18,770 new units in Q1 2024 compared to 19,420 units in Q1 2023 – a decrease of 3%. 
• Bengaluru added approx. 16,485 units in Q1 2024 – a yearly increase of 22%. Approx. 66% of the new supply was in the mid-range and premium segments (INR 40 lakh – INR 1.5 Cr.)
• NCR saw new supply dip by over 42% against Q1 2023, with approx. 7,270 units launched in Q1 2024 against 12,450 units in Q1 2023. Notably, 55% of the new supply was added in the ultra-luxury segment (homes priced >INR 2.5 Cr.)
• Chennai added approx. 7,290 units in Q1 2024, a yearly increase of 14% over Q1 2023. At least 87% of the new supply was in the mid and premium segments (priced within INR 40 lakh to INR 1.5 Cr)
• Kolkata added approx. 4,290 units in Q1 2024, a decline of 27% over Q1 2023. Approx. 90% of the new supply was in the affordable and mid segments (priced up to INR 80 lakh.)

Source: ANAROCK Research

Overall Sales Overview

Approx. 1,30,170 units were sold in Q1 2024 – an increase of 14% over Q1 2023. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 91% sales in the quarter.

• MMR saw the highest housing sales of approx. 42,920 units in Q1 2024, increasing by 24% over Q1 2023. Approx. 34,690 units were sold in Q1 2023
• Pune saw approx. 22,990 units sold in Q1 2024, increasing by 15% over Q1 2023 when approx. 19,920 units were sold
• Hyderabad recorded the sale of approx. 19,660 units in Q1 2024, a 38% increase over Q1 2023 when approx. 14,280 units were sold
• NCR saw a 9% decline in housing sales – from approx. 17,160 units in Q1 2023 to approx. 15,650 units in Q1 2024.
• Kolkata also saw a decline of 9% in housing sales in the period – from approx. 6,185 units in Q1 2023 to approx. 5,650 units in Q1 2024.
• Bengaluru saw housing sales increase by 14% in Q1 2024 against Q1 2023, with approx. 17,790 units sold in Q1 2024 and approx. 15,660 units sold back in same period last year
• Chennai saw approx. 5,510 units sold in Q1 2024 – a decline of 6% over Q1 2023, at least partially attributable to factors like introduction of Tamil Nadu government’s three-tier guideline values for apartment complexes in late 2023, and high stamp duty and registration charges.

Price Movement

Average residential property prices across the top 7 cities have seen significant jump in the last one year – ranging between 10-32% in Q1 2024 when compared to Q1 2023, mainly due to increase in the prices of construction raw materials and overall rise in demand. Hyderabad and Bengaluru recorded the highest annual price jump of over 32% and 25%, respectively.

Available Inventory

Despite massive new supply added to the top 7 cities in Q1 2024, overall available inventory declined by 7% in Q1 2024 when compared to Q1 2023. The total available inventory in the top 7 cities as of Q1 2024-end stands at approx. 5.81 lakh units. At 27%, NCR witnessed the highest reduction in available inventory in Q1 2024 when compared to Q1 2023.

Also Read: Housing prices surged ~20% from 2021 to 2023

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