Delhi-NCR housing prices see 31% growth; Overall 10% increase across eight cities in Oct-Dec: Report

Housing prices rose by an average of 10% during the December quarter across eight major cities, driven by strong demand and higher input costs, according to a report by CREDAI, Colliers, and Liases Foras. Delhi-NCR recorded the highest annual appreciation of 31% during the October-December period of 2024.

Real estate developers’ body CREDAI, real estate consultant Colliers India, and data analytic firm Liases Foras said in their joint report that the average housing prices across the top eight markets in India witnessed a 10% YoY rise during the last quarter of 2024, led by healthy demand momentum and positive market sentiment.

Price appreciation was evident in all the eight major cities, with Delhi NCR witnessing the highest rise at 31% YoY growth, followed by Bengaluru at 23% YoY rise during Q4 2024, it noted.

Among cities, the average housing prices rose 15% annually in Ahmedabad to ₹7,725 per sq ft on carpet area basis during the October-December period of 2024. Bengaluru saw a 23% increase in prices to ₹12,238 per sq ft. Housing prices rose 6% in Chennai to ₹8,141 per sq ft, while Delhi-NCR witnessed a 31% increase to ₹11,993 per sq ft, it said.

The report noted that prices in Hyderabad grew 2% to ₹11,351 per sq ft. Prices increased 1% in Kolkata to ₹7,971 per sq ft. Mumbai Metropolitan Region (MMR) registered a 3% growth in prices to ₹20,725 per sq ft. Pune saw a 9 per cent annual price appreciation during the period under review to ₹9,982 per sq ft, the data showed.

Unsold inventory declined by 5% during Q4 2024

It noted that the overall unsold inventory continued to decline for the fourth consecutive quarter and dropped 5% annually during Q4 2024 backed by healthy demand. At the end of December 2024, unsold inventory at the India level stood below 10 lakh housing units for the first time in the last two years.

MMR, with a share of around 40%, continued to account for a majority of the unsold inventory. Notably, Pune saw the highest annual drop in unsold inventory at 14%, closely followed by Hyderabad with 13% decline.

“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. This positive sentiment has translated into steady sales momentum across segments,” said Boman Irani, president of CREDAI National.

“Overall housing prices across the top eight Indian cities surged 10% on an annual basis in 2024. Prominent markets such as Delhi NCR and Bengaluru saw the steepest rise in average housing prices amidst rise in demand for luxury and ultra-luxury segments. Furthermore, the recent repo rate reduction along with government initiatives to fund stressed residential projects will provide a boost to the affordable housing segment,” said Badal Yagnik, Chief Executive Officer, Colliers, India.

“Sales witnessed a marginal decline, led by moderate new launches in the last quarter. We anticipate a growth in affordable and mid-segment supply and sales going forward, which will change the composition of supply, which has been skewed towards the luxury segment for the last four years”, said Pankaj Kapoor, Managing Director, Liases Foras.