Housing Prices continue to surge in top eight Indian cities, up 11 pc YoY in Q3 2024: Report

New Delhi [India], December 2 : Housing prices across the top eight cities in India surged by 11 per cent year-on-year (YoY) in Q3 2024, with an average rate of Rs 11,000 per square foot, driven by robust demand and positive market sentiment, according to CREDAI - Colliers - Liases Foras report.
Among these cities, Delhi NCR saw the highest YoY rise at 32 per cent, followed by Bengaluru with a 24 per cent increase.
The upward trend in housing prices reflects an ongoing strong market for residential properties, particularly in premium segments.
The demand momentum across major cities appears to be stabilizing, though market expectations remain high for the last quarter of 2024, which is expected to end on a strong note.
Boman Irani, President of CREDAI National, said, "We are seeing more and more aspirational homebuyers come to the fore - resulting in bigger homes that are also being reflected in the rise in prices as homes continue to get more expansive, truly reflecting the current market dynamics and consumer preferences. We expect this robust momentum to continue going into the new year and are hopeful of rate cuts in the impending future."
The report also highlights that unsold inventory across the eight major cities saw a continued quarterly drop, marking the third consecutive quarter of decline.
However, unsold housing units remained high, with over 10 lakh units unsold at the end of September 2024. Mumbai Metropolitan Region (MMR) holds the largest share at approximately 40 per cent.
Hyderabad, despite a modest dip in sequential numbers, witnessed a 28 per cent YoY increase in unsold inventory.
Badal Yagnik, Chief Executive Officer of Colliers India, noted, "While the housing market is gradually stabilizing, the outlook for the residential segment remains positive supported by strong underlying market fundamentals. Developers are recalibrating their strategies, particularly in the price-sensitive segments, by offering compact size units."
The report also indicated an ongoing reduction in unsold inventory, especially in cities like Pune, which saw a 13 per cent annual decline in inventory levels.
Other cities like Chennai and Kolkata also observed significant reductions, with annual declines ranging from 7-9 per cent. The overall unsold inventory reduction is seen as a positive sign, suggesting healthy market absorption across the country.
Pankaj Kapoor, Managing Director of Liases Foras, stated, "Sales and prices continue to grow, suggesting affordability and demand are intact. The luxury segment is still dominant, although we have been seeing a gradual reduction in new launches."
In Delhi NCR, the highest price increase was recorded, with a 32 per cent YoY rise, largely driven by the luxury and ultra-luxury segments.
Key areas like Dwarka Expressway and Golf Course Extension/Sohna Road witnessed price increases of more than 50 per cent, with average prices rising 75 per cent since the pandemic's early years.