India’s Global Standing in Q1 2025

The table below shows how India compares to the top 15 markets globally in terms of annual price growth.

Source: Knight Frank Research

Why India’s Prices Are Rising

According to Knight Frank, the growth is fueled by:

• Strong End-User Demand – More buyers are purchasing homes for actual use rather than speculation.
• Rising Incomes – Steady wage growth in urban India is helping more families afford property.
• Improved Economic Conditions – Better GDP growth, stable inflation, and improving job markets.
• Lower Borrowing Costs – Gradual cuts in interest rates have made home loans more affordable.

On a quarterly basis, India recorded a 2.9% increase in housing prices, reflecting sustained buyer confidence.

What This Means for Homebuyers

From a buyer’s perspective, rising prices can be a double-edged sword:

• If You Already Own Property: Your asset value is appreciating, potentially boosting equity.
• If You’re Looking to Buy: Affordability might become a challenge, especially if wages don’t keep up with rising prices.

Mid- and premium housing segments are projected to remain strong in 2025. First-time buyers in these categories may want to move quickly before prices climb further.

Global Context: India’s Resilience

In Q1 2025, 87% of markets worldwide posted positive annual growth. While Turkey, North Macedonia, and Portugal led the rankings, India’s steady, demand-driven growth stands out for its stability and low speculative risk.

In contrast, Mainland China and Hong Kong SAR posted the steepest declines, showing that not all markets are benefiting equally from global economic recovery.

Looking Ahead: 2025 and Beyond

Knight Frank expects India’s housing demand to remain healthy if borrowing costs continue to stabilize.
For prospective homebuyers, the first half of 2025 could be a strategic entry window before further acceleration in prices. Watching the Reserve Bank of India’s interest rate policies will be critical for timing purchases.

Also Read: Service Class Dominates Homebuying

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Skyrocketing property prices and geopolitical uncertainties have been cited as primary reasons for the decline in sales. “MMR and Pune accounted for 51% of the total sales, with MMR seeing a 26% yearly drop and Pune witnessing a decline of over 30%. Hyderabad recorded the highest annual drop in sales at 49%, while Bengaluru had the lowest decline at 16%,” said Anuj Puri, Chairman of ANAROCK Group.

New Launches Drop by 10% Y-o-Y

New housing supply also took a hit in Q1 2025, witnessing a 10% annual decline. The total number of new launches across the top seven cities fell from approximately 1.11 lakh units in Q1 2024 to just over 1 lakh units in Q1 2025.

Despite this decline, new launches in NCR, Bengaluru, and Kolkata surged by 53%, 27%, and 26%, respectively. However, other cities recorded substantial drops, with Hyderabad witnessing the highest decline of 55% Y-o-Y.

Luxury and ultra-luxury homes (priced above INR 1.5 crore) dominated the new supply, comprising 42% of the total launches. The premium segment (INR 80 lakh – INR 1.5 crore) followed with a 27% share, while mid-segment homes (INR 40-80 lakh) and affordable housing (under INR 40 lakh) accounted for 18% and 12%, respectively.

City-Wise Breakdown of New Launches

Among the top markets, Mumbai Metropolitan Region (MMR) and Bengaluru saw the highest number of new launches, accounting for 52% of the total supply in Q1 2025. While MMR witnessed a 9% dip in new launches, Bengaluru recorded a 27% Y-o-Y rise. Pune’s new supply declined by 10%, while NCR saw a significant increase of 53%.

Sales Performance Across Major Cities

In terms of sales, MMR led the market with 31,610 units sold in Q1 2025, marking a 26% decline from Q1 2024. Pune followed with 16,100 units sold, recording a 30% dip. Bengaluru saw the lowest drop at 16%, with 15,000 units sold.

Hyderabad recorded the steepest fall in sales at 49%, with only 10,100 units sold compared to 19,660 in Q1 2024. NCR, Chennai, and Kolkata also witnessed significant drops ranging between 20% and 31%.

Price Trends and Unsold Inventory

Despite the decline in sales, property prices continued to rise. Average residential prices in the top seven cities surged by 17% annually, with NCR and Bengaluru recording the highest jumps of 34% and 20%, respectively.

At the same time, unsold inventory in these cities dropped by 4% Y-o-Y, falling from approximately 5.80 lakh units at the end of Q1 2024 to 5.60 lakh units by the end of Q1 2025. Pune saw the steepest decline in unsold inventory at 16%, whereas Bengaluru recorded a 28% increase in available stock.

Market Outlook

Industry experts believe that while India’s macroeconomic fundamentals remain strong, rising property prices and global uncertainties are creating short-term hurdles for the housing market. “India’s overall economic scenario remains positive, with GDP growth expected to be among the highest globally and inflation under control. However, rising housing prices and global headwinds have impacted the residential market in Q1 2025,” Puri added.

Going forward, developers may focus more on right-sizing and right-pricing strategies to boost affordability and attract demand, particularly in the mid and affordable housing segments. The market’s trajectory in the coming quarters will largely depend on interest rate movements, economic stability, and global geopolitical developments.

Also Read: Akshay Kumar real estate

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The real estate body argues that charging GST on FSI would create substantial cost burdens for developers, ultimately impacting both the demand and supply of housing. CREDAI warns that such a move, whether applied retrospectively or prospectively, could exacerbate financial pressures in an already struggling sector. This, in turn, could lead to stalled projects and threaten the financial security of homebuyers.

The industry is already grappling with rising raw material costs, and the proposed GST on FSI charges could make affordable housing projects financially unviable. CREDAI stresses that the added tax burden would push prices further, especially affecting the middle-class segment, which constitutes 70% of homebuyers. Additionally, real estate developers are excluded from claiming Input Tax Credit (ITC) on GST, which would lead to further financial strain and double taxation.

CREDAI further asserts that the legal framework surrounding this issue should exempt FSI charges from GST. Citing notifications 14/2017 and 12/2017, CREDAI points out that services related to urban planning and town regulation by local authorities, including FSI, fall under the purview of Article 243W of the Constitution, which exempts them from GST.

Boman Irani, President of CREDAI, expressed his concerns, stating, “FSI/Additional FSI charges constitute a significant portion of project costs. Imposing GST on these charges could be counterproductive, leading to higher housing prices and dampening both housing supply and demand. We strongly urge the Government to keep these charges exempt from GST, as any tax imposition—retrospective or prospective—could destabilize ongoing and future real estate projects.”

CREDAI has called for the Government to maintain the current status quo, urging that FSI charges be kept outside the scope of taxation to prevent adverse effects on housing affordability, demand, and the overall economy.

Also Read: CREDAI-MCHI Launches Exhibition to Streamline Redevelopment in Mumbai

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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:

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

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Mumbai 11 November 2024: With housing emerging as India’s most-preferred investment option, the time it takes for property seekers to convert to buyers is a critical metric to gauge overall demand. Latest ANAROCK data indicates that this conversion time (from first lead to actual booking) is reducing steadily and stands at about 26 days in H1 FY2025, against the highest peak of 33 days in FY 2021. 

The lead-to-conversion time was at its lowest at 25 days in FY 2019 and FY 2024. If we compare the current trends with those of a year ago, there is an increase of a day in H1 FY2025 – it was 25 days in FY 2024. 

Days to Booking a House: Yearly Trends

Source: ANAROCK Research

A deeper analysis of the budget category data shows that ultra-luxury homes (priced >INR 3 Cr) involve the lowest conversion time, clocking in at just 15 days in H1 FY 2025. Back in FY 2024, it was 22 days – thereby reducing by a whole week.

Anuj Puri, Chairman – ANAROCK Group, says, “Ultra-luxury homes buyers are financially equipped to make quicker decisions. Also, high-end homes are currently in greatest demand and desirable inventory tends to sell out fast, necessitating a need for speed.”  

Out of all budget categories, buyers of homes priced between INR 50 lakh to INR 1 Cr took the most time (about 30 days) to decide on buying a home from the day they first got a lead to paying the booking amount. 

“In contrast, in FY 2024, the conversion time for this category of homes was the lowest at just 20 days,” says Puri. “However, if we compare H1 FY2025 data with that of the previous fiscal (FY2024), we note a slight increase in the conversion time – from 25 days in FY 2024 to about 26 days in H1 FY2025. We can attribute this to escalating property prices across cities in the last one year, which are causing purchase decisions to take longer “.

The conversion for homes priced between INR 1 Cr to INR 3 Cr stood at 27 days in H1 FY 2025. In FY 2024, conversion time taken was highest for homes priced between INR 1 Cr to INR 2 Cr (32 days). Properties priced between INR 2 Cr to INR 3 Cr took 26 days to be booked.

Affordable homes saw a minor reduction in the conversion time – from 27 days in FY 2024 to 26 days in H1 FY 2025.

Essentially, buyers took a longer time to book homes in FY2021 than they are taking today, reflecting the currently strong demand momentum. Given that the last few years have seen a surge in new supply by branded developers, buyers feel empowered to make quicker decisions as confidence in these players is high.

“Even with these decreases in lead-to-buy periods, it is unlikely that we will see any marked incremental changes in this process overall,” adds Puri. “Indian home buyers do not make purchase decisions lightly, given the huge capital outlay often involving most or all of their savings. Obviously, luxury and ultra-luxury home buyers do not operate from a place of financial constraint; however, this segment constitutes just about 10-11% of the overall Indian residential market sales currently. Affordable, mid-range – and, of late, upper-mid-range buyers will continue to define the bulk of demand in the country.

Also Read: <strong>Convenience ranks as a top priority for homebuyers while buying a home</strong>

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Annual Price Surge of 12%

The report highlights a significant annual growth in housing prices, with an average increase of 12% year-on-year (YoY) across the eight major cities. Delhi NCR recorded the highest YoY growth, with prices surging by 30%, followed closely by Bengaluru.

Quarterly Price Increases: Delhi NCR and Bengaluru Lead

Delhi NCR witnessed the highest quarterly price rise at 16%, driven by substantial price hikes in micro-markets such as Dwarka Expressway and Greater Noida. Bengaluru followed with an 8% increase in average housing prices. Notably, Delhi NCR’s luxury segment saw a considerable boost, with 3-4 BHK configurations experiencing up to a 12% QoQ price increase.

Unsold Inventory Declines Amidst Robust Demand

The report also notes a decrease in unsold inventory across most cities, reflecting robust sales activity. Kolkata experienced the highest sequential decline in unsold inventory at 5%, with Pune, Ahmedabad, and Chennai also seeing reductions. Despite these positive trends, MMR reported a slight increase in unsold units due to a surge in new launches.

Pune and Ahmedabad See Notable Reductions in Unsold Units

Pune stood out with the most significant annual drop in unsold inventory, falling by 13%. Ahmedabad and Chennai also reported a decrease in unsold housing units, with annual reductions ranging from 6% to 8%. This reduction indicates a healthy absorption rate in these markets.

Continued Growth and Market Dynamics

Boman Irani, President of CREDAI National, attributed the steady growth to strong homebuyer sentiment and ongoing positive market conditions. He emphasized that the festive season and government infrastructure initiatives are expected to further impact housing prices and inventory levels positively.

Badal Yagnik, CEO of Colliers India, noted that despite rising prices, demand remains robust, supported by stable interest rates and recent budgetary measures. He anticipates that the upcoming festive season will invigorate the housing market with increased sales and new launches.

Micro-Market Insights: Delhi NCR and Bengaluru

In Delhi NCR, Dwarka Expressway and Greater Noida saw impressive quarterly price increases of 35% and 24%, respectively. Bengaluru’s Inner East and Periphery & Outer East micro-markets reported notable price rises, with Inner East experiencing a 25% increase.

Outlook and Future Projections

Vimal Nadar, Senior Director and Head of Research at Colliers India, highlighted the strong demand in luxury and ultra-luxury segments, particularly for spacious units. The recent changes in long-term capital gains tax are expected to boost investor and homeowner sentiment, further supporting market growth.

As India approaches the festive season, industry stakeholders will closely monitor new launches and housing stock, anticipating continued momentum in the residential real estate sector.

Also Read: CIDCO to Launch Housing Scheme for 902 Flats on Krishna Janmashtami

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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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·       Unsold inventory in Delhi NCR dropped the highest during 2021-2023 period, at 19%, followed by Chennai and Pune

·       Housing prices across top eight cities in India increased 9% YoY in 2023

Amidst unwavering homebuyer confidence aided by a favourable interest rate cycle and positive economic outlook, housing demand scaled up and prices across the top eight^[1] cities in India surged by about 20% in the last two years (2021-2023). Bengaluru, Delhi NCR, and Kolkata have witnessed the highest rise in average housing prices at about 30% in 2023 compared to 2021 levels. This robust growth is underpinned by a notable uptick in housing demand, particularly in the mid and luxury segments. Amidst significant new launches, developers were able to successfully pass on the rising cost of construction in most cases.

Overall, the unsold inventory saw a notable drop in 2021 and largely continued to remain rangebound until 2023 end, despite significant influx of new supply. During 2022 and 2023 housing markets across the major cities saw an increase in new property launches, in mid and luxury segments. In cities like Bengaluru, Hyderabad, Kolkata, MMR, and Pune new supply surged 2-2.5 times in the last two years, reflecting robust activity and improved developer-market sentiment. With healthy visibility of upcoming projects from established developers and unchanged repo rate, the residential market will see sustained growth in the short to medium term.

Boman Irani, President of CREDAI National stated, “The year-on-year increase in housing prices is a combination of a number of factors – characterized by strong, robust demand from homebuyers – especially for mid and premium segments, along with the existence of a conducive buying eco-system coupled with healthy macro-economic factors, and the rise in prices of construction materials. The ongoing momentum also encouraged numerous developers that has led to the increase in housing supply across major cities in India. We expect both – housing demand and supply – to thrust forward in 2024 not only in top 8 cities but in Tier II, III regions as well.”

“Housing prices continued to reflect strong market momentum and saw a 9% annual rise in 2023. The year outperformed in several areas including uptick in high-end & luxury segments, scaling new peak in sales volume, infrastructure led development, resulting in deeper price discovery across most of the markets. During the year, all the eight major cities witnessed an increase in housing prices, with Bengaluru, highest at 21% YoY, followed by Kolkata at 11%. Looking ahead to 2024, the market is well poised to maintain its current trajectory, with the mid and luxury segments expected to thrive further, offering lucrative opportunities for investors and homebuyers alike,” Badal Yagnik, Chief Executive Officer, Colliers, India   

Pan India residential price trends (2021-2023) (in INR/sq ft) –

Source: Colliers, Liases Foras

All the prices are based on carpet area

Bengaluru saw heightened residential activity during 2021-2023

Bengaluru noted a significant 31% increase in housing prices during 2021- 2023. The city’s rising streak has been largely consistent over the last two years backed by noticeable uptick in demand for residential properties near IT localities like Whitefield, KR Puram, and Sarjapur. The peripheral and outer East and West sub-markets witnessed the highest price hike in the last two years in the range of nearly 50-60%. Additionally, the city saw an average 2X rise in new launches in 2023, compared to 2021, with significant surge in luxury and ultra-luxury property launches in peripheral areas within the North and East sub-markets, as they emerge as prominent IT hubs.  

Housing prices in MMR continues to witness a rise; unsold inventory swells

Average housing prices in MMR, the most expensive residential market amongst the top eight cities saw a modest yet steady 2% increase during 2023 compared to 2021 levels. Post-Covid-19, housing prices in MMR dipped and were steady henceforth for about three years. After a hiatus, prices increased during 2023 and inched closer to pre-Covid levels indicating recovery in the market. The sub-market of Panvel saw a significant surge with a 20% rise in the last two years, followed by Western Suburb (beyond Dahisar) and Navi Mumbai. The completion of the key infrastructure projects like Mumbai Trans Harbour Link (MTHL) and key metro lines, have led to a surge in prices in submarkets in and around Navi Mumbai and Western suburbs. With several upcoming major projects, housing prices are further expected to increase in the foreseeable future.

“Over the last two years from 2021 to 2023, cities like Delhi NCR, Chennai and Pune, registered a notable decrease in unsold inventory. While Delhi NCR led the pack with significant 19% drop, Chennai and Pune followed closely with about 5-10% drop each, during the two-year period. With an expected steady rise in income levels coupled with positive market sentiment, the demand momentum is likely to remain strong in these markets,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.

“The current state of real estate is the most productive when sales, supply, and prices are growing, and the price rise is not speculative. These factors work in harmony in a balanced and healthy real estate market.”, said Pankaj Kapoor, Managing Director, Liases Foras.

Also Read: Oberoi Realty achieves gross bookings of ~Rs 882 crores during the launch of its new tower in Elysian at Oberoi Garden City, Goregaon, Mumbai 

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Boman Irani, President of CREDAI National stated, “Homebuyer sentiments have been quite positive in 2023, playing a huge factor in not just the volume of housing registrations, but also indirectly having a cascading impact on increasing housing prices. On the back of a stabilized economy, job security, stable lending environment, we project this sales momentum to continue, with sustainable development and Green housing expected to lead the next growth phase in the industry. Developers have also been at the forefront to ensure that it remains a conducive buying environment, facilitating enhanced transparency and providing financial incentives that added to the overall appeal of purchasing homes.”

Alongside increasing sales, the top housing markets of Bengaluru, Hyderabad, Delhi NCR, and MMR saw a surge in new property launches, with a notable emphasis on the mid and luxury segments. The mid-segment accounted for the largest share of unsold units at 32%, closely trailed by the affordable segment. However, there was a 1% quarterly drop in unsold inventory, led by favorable market dynamics as of end of September 2023. With increased demand for spacious dwellings, developers continued to launch high-end projects, which pushed housing prices for under-construction units northward in markets like Kolkata, Hyderabad, Delhi NCR, and Bengaluru.

“The strong 10% annual increase in housing prices across India’s top eight cities during the third quarter of 2023 signifies a competitive and flourishing housing market. Fueled by strong homebuyer sentiments and positive market fundamentals, Hyderabad and Bengaluru witnessed the highest price rise at 18-19% YoY during the quarter. Tracing the strong streak of sales momentum with industry consensus, sales estimates already reaching closer to 2022 levels, 2023 is expected to close stronger than 2022. Furthermore, developers are increasingly targeting sustainable projects, with homebuyers’ inclination towards eco-friendly living, affirming a green future for the country,” Badal Yagnik, Chief Executive Officer, Colliers, India   

“Last year, the housing market grew by 35%. The sales in the first nine months of the current year grew further by 11% from the previous year. With a 10% increase in the prices, the housing market is at its most productive phase in India; sales, new supply, and prices are witnessing healthy growth”, said Pankaj Kapoor, Managing Director, Liases Foras”. 

Pan India residential prices Q3 2023 (in INR/sq ft) –

Source: Liases Foras, Colliers

All the prices are based on carpet area

^[1] Top eight cities include- Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, MMR, and Pune

Hyderabad witnessed the highest price rise at 19% YoY during Q3 2023

Hyderabad emerged as the frontrunner with a 19% YoY upswing in housing prices, marking the highest surge among the top eight cities in India. Central Hyderabad, being an established sub-market, recently witnessed new property launches at a market premium, resulting in a notable surge in overall property prices. Moreover, the imminent development of Metro Phase 2 and the Airport metro line promises to further elevate the city’s residential landscape, connecting major office hubs to the airport, and is set to catalyze future residential developments.

“In Q3 2023, housing prices in Bengaluru’s residential market surged 18% YoY, largely led by the Periphery and Outer East region where housing prices rose 39% annually, driven by high-end & luxury project launches and completion of KR Puram & Whitefield metro lines. The city is emerging as a new luxury destination and several established developers are actively exploring to tap on this growing segment and cater to diverse preferences & demand dynamics. Whitefield, Sarjapur Road, and HSR Layout are likely to be the preferred localities for such high-end and luxury developments,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Strong demand continues to pull unsold inventory down in Delhi NCR

The unsold inventory in Delhi NCR dropped 7% YoY, indicating a steady momentum in sales in this region. Interestingly, the dip in unsold stock has been seen for the third consecutive quarter this year, reflecting improving market fundamentals.

Housing prices in MMR rose marginally in Q3 2023

The average housing prices in MMR recorded a notable 2% surge on a sequential basis during the quarter ended September 2023. Navi Mumbai sub-market stood out, with the highest YoY price rise at an impressive 11% in the region. At the same time, the region saw a substantial surge in new launches, especially in suburban and peripheral sub-markets such as Western and Central Suburbs.

Also Read: IT Hubs see Up to 31% Housing Rental Values Growth among Top 7 Cities in 9M 2023 

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Housing prices across the top eight cities in India (Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad) continue to head northwards at 6% YoY amidst robust housing demand and quality launches by top developers. Since the beginning of 2022, housing prices have been on the rise on the back of increased demand seen since last year, paired with rise in input prices. Delhi-NCR saw the highest increase in residential prices at 14% YoY, followed by Kolkata and Ahmedabad with 12% and 11% YoY increase respectively.

New launches have been on the rise since the beginning of the year as the market regains momentum after a hiatus, despite rising interest rates and input costs since the beginning of the year. Overall^[1], unsold inventory rose 3% YoY. Owing to the spike in launches in the past few quarters, around 94% of the unsold inventory in India are under construction. Majority of the cities saw a dip in unsold inventory, with Bengaluru witnessing the steepest decline of 14% YoY, led by higher sales. Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, led by significant new launches. MMR continues to account for the highest share in unsold inventory at 37%, followed by 13% in Delhi- NCR and Pune each.

Harsh Vardhan Patodia, President of CREDAI National stated, “The Real Estate market across the country has witnessed a K-shaped recovery in terms of prices, the consumer sentiment has continued to stay robust as the pandemic reshaped the importance of owning a home rather than renting one. With the festive period expected to continue till the end of this year, we can expect sales to be northbound and the number of unsold inventories to decline as well. While there has been a rise in housing prices in line with the global inflationary trends, the market can expect the prices to continue to rise owing to the robust demand. The industry has embarked towards solidity after a let-up due to the pandemic and should be able to stabilize in H1 of 2023”.

“After uncertainty in the past two years, 2022 has ushered in relative stability and recovery for the residential market across top eight cities. The rise in inflation and hike in input costs have put upward pressure on housing prices pan India. Several developers have launched projects and offered rebates during the festive period. While residential activities continue to remain strong, recessionary pressures may have an impact on the salaried class, who form a notable share in homebuying in the top Indian cities,” said Ramesh Nair, Chief Executive Officer | India & Managing Director, Market Development | Asia, Colliers.

“The aggregated sales of three-quarters of CY22 are 16% higher than the aggregate similar three quatres sales of CY 21. Despite increasing interest rates and marginal property prices, there is still a parity between the prices and affordability; sales volumes are likely to stay strong. The year 2022 is slated to pose highest ever sales in the residential market in India, said Pankaj Kapoor, Managing Director, Liases Foras”.

Pan India residential prices Q3 2022 (in INR/sq ft) –

Delhi-NCR continues to witness highest price appreciation during Q3 2022, at 14% YoY

Housing prices in Delhi-NCR have witnessed an uptick since September 2020. Delhi NCR saw the highest increase in housing price across pan India at 14% YoY. Golf Course Road saw the highest price rise of 21%, followed by Ghaziabad. The unsold inventory in the city dropped by 11% YoY during Q3 2022.

Unsold inventory rose 21% YoY in MMR region, while housing prices continue to remain stable

MMR, with the rise in significant new launches, witnessed a rise in unsold inventory for the fifth quarter in a row. Unsold inventory rose 21% YoY in the region, while housing prices continue to remain rangebound with a slight dip of 1% on a quarterly basis. However, Western Suburbs (beyond Dahisar) saw the highest increase in prices at 10% YoY followed by Panvel with 8% increase YoY.

Bengaluru witnessed a steepest decline in unsold inventory, at 14% YoY

While housing prices in Bengaluru increased 6% YoY after remaining rangebound for the last two years, unsold inventory witnessed a sharp decline during Q3 2022, dropping by 14% YoY. Amidst high inclination towards homeownership and higher disposable income, demand for large spaces and self-sustained properties is rising. During Q3 2022, unsold inventory dropped 34% compared with Q3 2019 levels.

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