Housing prices show annual growth of 12 per cent, 14th consecutive quarterly growth

New Delhi [India], August 27 (ANI): The average housing prices across the top eight Indian cities witnessed a 3 per cent quarterly growth in Q2 2024, indicating a positive growth and homebuyer sentiment for the 14th consecutive quarter, a joint report by CREDAI, Colliers, and Liases Foras said.

The report says on a yearly basis average housing prices in India rose 12 per cent at Rs 10,804 per sq ft during Q2 of 2024.

Seven out of the eight cities under review saw an annual increase in housing prices. Delhi NCR is on the top with 30 per cent annual increase in housing prices followed by Bengaluru at 28 per cent and Ahmedabad and Pune at 13 per cent each.

Hyderabad saw an annual increase of 7 per cent while Kolkata and Mumbai Metropolitan Region (MMR) saw an increase of 6 per cent each. Housing prices in Chennai remain stable with no change.

Badal Yagnik, Chief Executive Officer, Colliers, India said that the upcoming festive season will further boost housing prices.

“Notably, average housing prices have witnessed a consistent double-digit annual growth rate (12 per cent in Q2 2024,) adding buoyancy to the sustained growth story in residential real estate. Additionally, the upcoming festive season will further invigorate the housing market with heightened sales and new launches. We thus envisage a strong finish for the housing market in 2024,” said Yagnik

Boman Irani, President of CREDAI National says consumers are shifting towards real estate as a preferred asset.

“Indian Real Estate has been somewhat experiencing a bull run in the past few quarters, substantiated by the volume of transactions across Top 8 cities as well as the prevalent positive sentiments towards housing. There has been a direct impact on housing prices – signifying not just the underlying demand but the definitive shift towards real estate as a preferred asset class”, said Irani

On an annual basis, unsold inventories remained range-bound and continued to witness a sequential drop. Five out of the eight cities under review in this report saw a drop in the unsold inventories. Pune saw the highest drop in unsold inventory at 13 per cent followed by Ahmedabad and Chennai at a 7-8 per cent dip.

If we see city-wise growth, housing prices surged 30 per cent (YoY) in Delhi NCR. The average price increase on Dwarka Expressway and Greater Noida was seen at 69 per cent and 45 per cent respectively. Also, unsold inventory in the region dropped for the sixth consecutive quarter.

In Bengaluru housing prices surged 28 per cent (YoY) mainly led by the luxury segment. Periphery and outer east micro markets saw a price increase of 45 per cent. Ongoing metro extensions and upcoming suburban rail projects will further boost prices in these areas.

Ahmedabad prices surged 13 per cent on continued demand momentum. City central west and eastern suburbs micro markets saw the highest increase in prices at 16 and 14 per cent respectively. Unsold inventory also dropped by 8 per cent in the city.

Pune too saw a 13 per cent surge in price, the city also saw a sharp 13 per cent decrease in inventories as well. 2-3 BHK apartments in the city saw an 11-12 per cent annual hike in prices.

Hyderabad saw an annual surge of 7 per cent in housing prices. While the ready-to-move-in units in the city saw an increase of 21 per cent in prices. With the rise in demand, unsold inventories continued to decline.

MMR and Kolkata saw a modest 6 per cent annual growth in housing prices. Panvel in New Mumbai saw a notable increase of 16 per cent per annum in prices. While units in east Kolkata saw an increase of 17 per cent in prices. Unsold inventory too declined in both Kolkata and MMR.

Chennai remained the only city among the top eight where prices remained stable over the years, but the city saw a sharp 7 per cent decline in unsold inventories, despite pick up in new launches.