Thinking of upgrading your home or investing in real estate? You might want to check if your city made the list of India's hottest housing markets. In a trend that feels as consistent as your morning chai, housing prices across the country’s top cities have been climbing for 15 consecutive quarters.

Whether you're eyeing a luxury apartment or a compact starter home, the market dynamics are changing in ways that could reshape your property goals. So, where does your city stand in this housing boom?

Housing prices in India’s top cities have been steadily climbing, with an 11% year-on-year (YoY) increase recorded during the third quarter of 2024. This marks the 15th consecutive quarter of rising property prices since 2021, driven by robust demand and positive market sentiment.

According to recent data, the average housing price across eight major cities now stands at Rs 11,000 per square foot, according to a report from CREDAI – Colliers - Liases Foras.

Among these, Delhi NCR experienced the highest surge, followed by Bengaluru. As the real estate sector adjusts to changing dynamics, the demand for residential properties is expected to remain healthy, keeping 2024 on track for strong overall performance.

TOP CITIES SEE STEADY PRICE GROWTH

Delhi NCR led the pack with a 32% YoY increase in housing prices during Q3 2024. Within the region, areas like Dwarka Expressway and Golf Course Extension Road saw price jumps of over 50% YoY. Compared to 2020, the average housing prices in Delhi NCR have surged by 75%, primarily driven by demand for luxury and spacious homes.

In Bengaluru, the average housing price rose by 24% YoY, with a strong preference for larger configurations such as 3- and 4-bedroom units.

Mumbai Metropolitan Region (MMR) and Pune also showed steady growth, although both regions are nearing a plateau in terms of new sales and supply.

UNSOLD INVENTORY DECLINES

Despite high unsold inventory levels of over 10 lakh housing units across the eight cities, there has been a consistent quarterly decline for three consecutive quarters. MMR accounts for the largest share of this inventory at 40%. Pune showed the sharpest annual drop of 13%, marking its fifth straight quarter of reduced unsold units. Chennai and Kolkata also recorded notable inventory reductions of 7-9% annually.

Vimal Nadar, Senior Director and Head of Research at Colliers India, said, “Developers are being cautious with new launches. They are now targeting high-demand pockets and shifting focus to luxury and ultra-luxury segments. Spacious configurations, such as 3-4BHK units in cities like Bengaluru and Delhi NCR, saw price increases of up to 26% YoY.”

Boman Irani, President of CREDAI National, said, “The steady rise in housing prices is a reflection of positive homebuyer sentiment and the conducive nature of the market. The demand for larger homes and luxurious amenities continues to drive prices upward. We anticipate this momentum to carry forward into 2025, especially if rate cuts are announced.”

Adding to this, Badal Yagnik, CEO of Colliers India, said, “Although the market is stabilising, the long-term outlook remains strong. Developers are recalibrating by offering compact units for price-sensitive buyers while maintaining growth in the luxury segment. Monetary policy easing and flexible payment options could further aid buyers.”

“Despite high prices, affordability and demand are intact. However, supply is becoming a challenge in cities like NCR and Chennai, which may lead to a surge in new launches in these regions," said Pankaj Kapoor, Managing Director of Liases Foras.

LUXURY AND SPACIOUS HOMES LEAD THE WAY

The luxury and ultra-luxury segments are seeing growing interest. Launches of high-end projects have boosted demand in regions like Delhi NCR and Bengaluru, while developers are also tailoring offerings to meet the needs of aspirational homebuyers.

Interestingly, compact units have also found favour among price-conscious buyers in smaller markets. Flexible payment plans, discounts, and bundled offerings have further helped developers maintain sales momentum across various segments.

Article Source: India Today