by THO
Average housing prices increased by 10% annually during Q1 2024 on the back of strong residential demand. 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, a report has said.
Bengaluru witnessed the maximum price increase of 19% among top eight cities while Delhi-NCR saw housing prices increase of 16%, Colliers India and data analytic firm Liases Foras said in a joint report.
The eight cities included Mumbai, Delhi-NCR, Bengaluru, Ahmedabad, Pune, Hyderabad, Chennai and Kolkata.
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In Ahmedabad and Pune, housing prices rose 13% annually to ₹7,176 per square feet and ₹9,448 per square feet, respectively. Housing prices in Hyderabad grew 9% to ₹11,323 per square feet, while rates in Chennai were up by 4% to ₹7,710 per square feet.
In Mumbai Metropolitan Region (MMR), the prices increased by 6% to ₹20,361 per square feet. Housing prices in Kolkata increased 7% to ₹7,727 per square feet during January-March period of 2024, from ₹7,211 per square feet in the year-ago period, the report said.
Unsold inventory in Pune witnesses the steepest drop at 10% YoY
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.
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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. Although Hyderabad and Bengaluru witnessed yearly increases in unsold inventory, both cities saw a slight quarterly dip.
“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 infrastructure projects,” said Boman Irani, president, CREDAI National.
“Residential real estate in India continued to benefit from a positive sentiment 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,” said Badal Yagnik, Chief Executive Officer, Colliers, India.
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“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,” said Pankaj Kapoor, Managing Director, Liases Foras.
“Demand for housing units across categories, especially luxury and ultra-luxury segments has remained upbeat for the last few quarters. Residential developers are likely to further capitalize on the growing demand in the luxury/ultra-luxury segment and launch more upscale projects,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
