Average housing prices have shown significant growth across several Indian cities. Analyzing on a quarter-on-quarter basis, the top eight Indian cities recorded a growth of 3% in the second quarter, April-June, 2024. However, price levels at the national level have been constant at 3% for the last four quarters.
On an annual basis, average housing prices have shown 12% growth across the eight major cities. Among these cities, Delhi NCR witnessed the highest year-on-year growth at 30%, closely followed by Bengaluru.
Kolkata saw the highest sequential decline in unsold inventory levels at 5% followed by Pune with 3% dip and there was an availability of over 10 lakh housing units across
the primary market of eight major cities, as of April-June 2024. Despite a yearly increase in the number of unsold units in Hyderabad and Bengaluru, both cities saw a modest dip on a sequential basis.
Boman Irani, President of CREDAI National said, “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. With the upcoming festive season – coupled with the Government’s focus on infrastructure and a relatively stable lending eco-system – we project this momentum to further have an impact on both prices and unsold inventory levels, as the industry’s demand-supply dynamics change.”
Several cities have witnessed price appreciation in the real-estate sector. Delhi NCR witnessed the highest quarterly price appreciation at 16%. Within Delhi NCR, Dwarka Expressway and Greater Noida saw a price appreciation of 35% and 24% respectively in average housing prices on a quarterly basis. Bengaluru too witnessed significant price appreciation, with average housing prices in the city going above the INR 11,000 mark in April-June 2024.
Besides price appreciation, unsold inventory levels have declined up to 5% on a quarterly basis across the top eight cities. On an annual basis with a 13% year-on-year drop, Pune recorded the highest annual decline in unsold units. Annual decline in unsold inventory levels in Ahmedabad, Chennai and Kolkata too registered a 6-8% drop. Such stable price growth statistics are being attributed to underlying steady demand for real estate across Indian cities.