According to a report from CREDAI-Colliers-Liases Foras, prices rose by 10% in the last quarter of 2024 compared to the last quarter of 2023 in the top eight cities of India, including all major cities. The highest growth was seen by Delhi NCR at 31%, with Bengaluru following at 23%.
The Demand for Luxury Housing is Increasing.
Affordable housing sales will be primarily maintained; however, there will be increased demand for luxury and ultra-luxury houses in the future. Hence, housing prices are predicted to be a bit more expensive in major cities in 2025.
The decline in unsold Stock
India registered the first time in two years below one million unsold homes by December 2024. For the fourth consecutive quarter, unsold homes fell to 5% lower in Q4 2024. The highest number of unsold homes were held by Mumbai Metropolitan Region, which accounted for 40% of total unsold homes. Pune experienced the largest drop at 14%, followed by Hyderabad at 13%.
Delhi NCR Sees Maximum Price Rise
Delhi NCR saw the highest price rise at 31%, being the top city within the Indian subcontinent, primarily due to demand for luxury homes. The highest spike was on the Dwarka Expressway at 58%, followed closely by Greater Noida at growth of 52% in that regard. Property prices are expected to rise further in the area with the coming Jawar International Airport.
Infrastructural development alone caused price hikes in other cities like Bengaluru, Ahmedabad, and Pune. Prices in some of the well-known areas of Bengaluru and Pune jumped up by as high as 15% on account of high demand for ready-to-move-in homes.
Expert Insights
According to Boman Irani, President of CREDAI National, people now want bigger homes with better amenities, which is helping sales. Rising costs of construction and increased land prices are also pushing home prices upward.
He noted the other two cities to shoot up in terms of price increases, besides Delhi NCR and Bengaluru, as a result of the luxury home demand, according to Badal Yagnik, CEO of Colliers India. He further added that a recent reduction in the repo rate and government support for struggling housing projects will indirectly benefit the affordable housing segment.
The new project launches were fewer; hence, new home sales declined a little in the last quarter, said Pankaj Kapoor, MD, Liases Foras. He, however, sees a more optimistic future with innovative low and mid-range housing projects on stream that surely would stabilize the market.
Foremost Real Estate Trends
The Director Strategy of Whiteland Corporation notes that Dwarka Expressway is emerging as a prime real estate destination owing to its excellent connectivity and modern amenities.
Dwarka Expressway is no more a risky proposition; it is now a smart investment, opined Harinder Dhillon, Senior Vice President- Sales at BPTP. This attractive investment opportunity is nurtured by superb infrastructure combined with sustained growth.
Reasoning for increased demand in premium housing in conjunction with rise in construction costs pushing the prices up has been provided by Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation. People today like living in well-planned communities with better facilities.
According to Mohit Malhotra, the CEO of NeoLiv, Gurugram is riding high on the wave of demand generated from better infrastructure, affluent buyers, and real estate becoming a really smart investment. He added that these trends very clearly indicate a positive economic outlook along with trends towards owning and better living.
The overall trend in the real estate market across India continues to move on an upward slope, which is aided by an increased demand for luxury homes, improved infrastructure, and higher construction costs. If these trends are predicted to continue in future months, housing prices can be expected to rise.
