The housing market in India is showing positive growth and homebuyer sentiment, with average housing prices across the top eight cities increasing by 3% in the second quarter of 2024. The report by CREDAI, Colliers, and Liases Foras reveals that on a yearly basis, housing prices rose by 12%. Delhi NCR saw the highest annual increase at 30%, followed by Bengaluru at 28% and Ahmedabad and Pune at 13% each. Hyderabad, Kolkata, and Mumbai Metropolitan Region also witnessed price increases, while Chennai remained stable.
According to Badal Yagnik, CEO of Colliers India, the upcoming festive season is expected to boost housing prices even further. He anticipates a strong finish for the housing market in 2024. Boman Irani, President of CREDAI National, notes that consumers are increasingly shifting towards real estate as a preferred asset class, leading to a bull run in the real estate market with positive sentiments towards housing.
On an annual basis, unsold inventories in the top eight cities saw a sequential drop, with Pune leading the way with a 13% decrease, followed by Ahmedabad and Chennai at 7-8%. Delhi NCR and Bengaluru also saw drops in unsold inventories. City-wise growth data shows that housing prices in Delhi NCR surged by 30% year-over-year, with significant price increases in the Dwarka Expressway and Greater Noida areas.
In Bengaluru, housing prices increased by 28% year-over-year, driven by the luxury segment and ongoing infrastructure projects. Ahmedabad saw a 13% surge in prices, with central west and eastern suburbs leading the way. Pune also saw a 13% price increase and a sharp decrease in inventories. Hyderabad witnessed a 7% annual surge in housing prices, with ready-to-move-in units seeing a 21% increase in prices.
MMR and Kolkata saw a modest 6% annual growth in housing prices, with Panvel in New Mumbai and east Kolkata seeing notable increases. Chennai remained stable in terms of prices but saw a decline in unsold inventories despite new launches. The overall outlook for the housing market in India seems positive, with strong demand and price growth across various cities. The upcoming festive season is expected to further invigorate the market, leading to a successful finish for 2024.
