Average Housing Cost Grows, Delhi NCR, Bengaluru Lead; Check Details

The price of average housing across India’s major eight cities saw a growth of 10 per cent year-on-year (YoY) basis in the fourth quarter of 2024, as per combined findings of CREDAI, Colliers, and Liases Foras (Real estate consultancies). This growth was led by Delhi NCR with a rise of 31 per cent YoY basis, followed by Bengaluru at 23 per cent. 

Additionally, there was also a drop in unsold inventory, by 5 per cent annually in Q42024. This was the first time the unsold unit was below 10 lakh nationally in two years, the report added.

Pune saw a sharp decline in its unsold inventory, which declined by 14 per cent, trailed by Hyderabad by 13 per cent, indicating healthier market dynamics. Mumbai Metropolitan Region (MMR), however, still holds nearly 40 per cent of the remaining unsold stock.

Boman Irani, President of CREDAI National said that a high demand for larger homes along with better amenities, as per an official release.

He said that this has also reflected in increased sales momentum across all sectors. However, cost pressures in construction and land acquisition are also notably contributing to pricing trends, he added as per the official statement.

Irani believed that a potential reduction in interest rates could further boost affordability and drive even greater demand. He claimed that the positive trend is expected to continue and thrive through the year, making it an opportune time for homebuyers to invest in real estate, as per the official release.

Luxury Demand and Infrastructure Fuel Price Rally

Delhi NCR’s steep price rise was ignited by premium housing demand, especially along the Dwarka Expressway, witnessing 58 per cent YoY growth and Greater Noida at 52 per cent with upcoming infrastructure projects like the Jewar International Airport expected to further boost prices. 

Meanwhile, Bengaluru, Ahmedabad, and Pune also saw notable appreciation, attributed to infrastructure upgrades and demand for ready-to-move-in units in micro-markets such as Bengaluru’s Outer West and Pune’s Baner-Nagar Road.

“The sustained growth underscores homebuyers’ confidence, driven by preferences for spacious living and lifestyle upgrades,” said Irani, President of CREDAI National, as quoted in an official release.

Affordable Housing to Gain Momentum

While luxury segments dominated 2024, experts expect growth in affordable and mid-segment housing. “New launches in affordable categories are expected to rebalance supply, which has leaned toward luxury for four years,” noted Pankaj Kapoor, Managing Director of Liases Foras,  as quoted in an official release.

Government actions, including repo rate reductions and funding for stressed projects, are likely to bolster this segment.

Colliers India CEO Badal Yagnik added, “With room for further rate cuts, cities may see broader sales traction. Residential prices could maintain similar growth levels in 2025, as quoted in an official release.

City-Specific Trends

Chennai and Kolkata recorded moderate price increases of 6 per cent and 1 per cent respectively.

Hyderabad on the other hand remained stable with a 2 per cent rise. MMR, despite a 3 per cent YoY price increase, remains India’s most expensive market at Rs 20,725 per sq ft. Pune, with a 9 per cent YoY price jump, also saw its unsold stock shrink sharply.

Vimal Nadar, Senior Director at Colliers India, said, “Luxury properties, seen as status symbols and investments, drove up prices for 3-4BHK units by 34% in key cities. This trend will persist with rising HNI populations and demand for premium amenities,"  as quoted in an official release.