Residential Real Estate Prices Surge Across Top Indian Cities In Q1 2024
Bengaluru and Delhi NCR emerged as frontrunners with steep price movements, boasting growth rates of 19 per cent and 16 per cent year-on-year respectively
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In the first quarter of 2024, India's residential real estate market witnessed a significant uptick in average housing prices, with a remarkable 10 per cent year-on-year increase, as reported by the Housing Price-Tracker Report Q1 2024 jointly released by CREDAI, Colliers, and Liases Foras.
Bengaluru and Delhi NCR emerged as frontrunners with steep price movements, boasting growth rates of 19 per cent and 16 per cent year-on-year respectively. The demand for spacious units, particularly 3 and 4 BHK configurations, remained robust, driving up prices by up to 25 per cent across cities. Moreover, Pune experienced the highest annual drop in unsold inventory at 10 per cent year-on-year, closely followed by Delhi NCR and Ahmedabad.
According to industry experts, this surge in housing prices reflects the buoyant demand prevailing in the market, especially in the premium and luxury housing segments. Stable lending ecosystems and significant infrastructure projects have reshaped the demand-supply dynamics, propelling the momentum in residential real estate. Boman Irani, President of CREDAI National, expressed confidence in the sustained momentum, foreseeing continued growth in the fiscal years 2024 and 2025.
Badal Yagnik, Chief Executive Officer at Colliers India, highlighted the positive sentiment prevailing in the residential real estate sector, attributing the price surge to stable repo rates and infrastructure upgrades across major Indian cities. He anticipated improved affordability in the near term, particularly for EMI-dependent homebuyers, with the prospect of reductions in benchmark lending rates.
The residential price trends in Q1 2024 revealed notable escalations across the top eight cities in India. Bengaluru, with a staggering 19 per cent year-on-year increase, led the pack, followed by Delhi NCR, Hyderabad, and Pune.
The surge in housing prices was particularly pronounced in micro-markets benefiting from upcoming infrastructure projects and strategic launches. Pankaj Kapoor, Managing Director of Liases Foras, emphasised the strong sales and new supply introductions driving this trend, forecasting a potential price increase of 10-15 per cent in the coming months.
Specifically, Bengaluru's Periphery and Outer East micro market witnessed a remarkable 32 per cent year-on-year increase in average housing prices, driven by robust demand for spacious units.
In Delhi NCR, areas along the Dwarka Expressway experienced a substantial 23 per cent increase in average capital values, fueled by a significant number of new launches. Pune's reduction in unsold inventory levels coincided with a major 13 per cent annual rise in average housing prices, with key localities like Camp and Baner witnessing substantial year-on-year price increases ranging between 20-23 per cent.
The positive momentum in India's residential real estate market underscores its resilience and attractiveness, fueled by strong demand dynamics and strategic market interventions. As the sector continues to evolve, developers are expected to capitalise on emerging opportunities and tailor offerings to meet the evolving needs of homebuyers.
