Average housing prices increased by 12% annually across eight major cities across the country with Delhi-NCR witnessing the highest price rise of 30%, a report by Credai, Colliers and Liases Foras has said. Positive homebuyer sentiment and steady demand have kept the momentum strong in the residential market across major Indian cities, realtors' body CREDAI, property consultant Colliers and data analytics firm Liasas Foras said in their Housing Price-Tracker Report Q2 2024. Delhi-NCR saw a maximum 30% price rise to ₹ 11,279 per square feet from ₹ 8,652 per square feet, it showed.
Within Delhi-NCR, Dwarka Expressway and Greater Noida witnessed a price appreciation at 35% and 24% Q-o-Q in average housing prices respectively. This is the highest quarterly price rise for these micro markets in the last few quarters and is led by the recent pick up in luxury segment launches, the report noted. Furthermore, preference for spacious housing units in luxury and ultra-luxury segments led up-to 12% QoQ growth in average price of 3-4 BHK configurations in Delhi NCR, the report showed.
Also Read: Mumbai ranks 2nd, New Delhi 3rd in global property price index; Manila tops the list Bengaluru too witnessed significant price appreciation, with average housing prices in the city breaching the ₹ 11,000 mark in Q2 2024. Average residential prices in the city increased by 8% on a quarterly basis. Within Bengaluru, Inner East micro market saw the highest quarterly rise at 25% followed by periphery and Outer East micro market at 10%.
Led by heightened demand in the luxury segment, Inner East and Periphery and Outer West micro markets have witnessed significant surge in average housing prices for ready units, the report showed. Housing prices in Mumbai Metropolitan Region (MMR) increased 6% to ₹ 20,275 per square feet from ₹ 19,111 per square feet. In Pune, the prices of residential properties rose 13 per cent to ₹ 9,656 per square feet in April-June 2024 from ₹ 8,540 per square feet in the year-ago period.
Unsold inventory remains stable While unsold inventory remained stable on an annual basis at a pan India level, it dropped marginally on a quarterly basis amid healthy sales in housing units. At 5%, Kolkata saw the highest sequential decline in unsold inventory levels followed by Pune with 3% dip, the report showed. Also Read: Does redevelopment of old buildings impact housing prices and rentals in Mumbai? As of Q2 2024, there was an availability of over 10 lakh housing units across the primary market of eight major cities, with MMR alone having about 40% share in unsold inventory levels, it showed.
Despite a yearly increase in the number of unsold units in Hyderabad and Bengaluru, both cities saw a modest dip on a sequential basis. As the festive season approaches, developers are likely to closely monitor new launches and overall housing stock in prominent residential catchment areas. Excluding MMR, unsold inventory levels have declined by up to 5% on a quarterly basis across all cities under review.
While MMR witnessed healthy sales in residential units during Q2 2024, significant surge in new launches led to a marginal rise in unsold units. On an annual basis with a 13% YoY drop, Pune particularly witnessed the highest annual decline in unsold units. Annual decline in unsold inventory levels have been significant in Ahmedabad, Chennai and Kolkata too with 6-8% drop.
“Within the residential market, demand growth has been the strongest in luxury and ultra-luxury segments including second and vacation homes which is evident with price growth in select micro-markets of Delhi-NCR and Bengaluru. Average housing prices for spacious dwelling units, particularly 3-4 BHK configurations in these cities have increased up-to 30% on an annual basis," said Vimal Nadar, Senior Director and Head of Research, Colliers India. “Indian real estate has been somewhat experiencing a bull run in the past few quarters, substantiated by the volume of transactions across Top 8 cities as well as the prevalent positive sentiments towards housing.
There has been a direct impact on housing prices - signifying not just the underlying demand but the definitive shift towards real estate as a preferred asset class," said Boman Irani, president of CREDAI National. Also Read: Despite several real estate project launches on the anvil, property prices unlikely to moderate in Bengaluru: Experts “Sales across India's cities have maintained growth despite the price rise. The current quarter also showed a remarkable 33% increase in new launches in the affordable segment.
NCR's growth in sales and new launches augurs that the market will stay on a growth trajectory”, said Pankaj Kapoor, Managing Director, Liases Foras..
