Average housing prices across the top eight markets in India witnessed a 10% YoY rise during the last quarter of 2024, led by healthy demand momentum and positive market sentiment. Interestingly, average housing prices have been on a rising spree for the 16th consecutive quarter, starting 2021. Price appreciation was evident in all the eight major cities, with Delhi NCR witnessing the highest rise at 31% YoY growth, followed by Bengaluru at 23% YoY rise during Q4 2024, according to the CREDAI – Colliers – Liases Foras Housing Price-Tracker Report Q4 2024.

As per the report, while affordable housing segment will continue to form the bulk of housing sales, demand within luxury and ultra-luxury segments can amplify further in 2025. Traction in these segments is likely to drive average housing prices upwards across most major residential markets of the country in the next few quarters.

Overall unsold inventory continued to decline for the fourth consecutive quarter and dropped 5% annually during Q4 2024 backed by healthy demand. At the end of December 2024, unsold inventory at the India level stood below 10 lakh housing units for the first time in the last two years. MMR, with a share of ~40%, continued to account for a majority of the unsold inventory. Notably, Pune saw the highest annual drop in unsold inventory at 14%, closely followed by Hyderabad with 13% decline.

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Boman Irani, President of CREDAI National, said, “The sustained growth in housing prices underscores the strong confidence among homebuyers, driven by a preference for spacious living and lifestyle upgrades. With evolving consumer aspirations, we are witnessing increased demand for larger homes, better amenities, and integrated living spaces. This positive sentiment has translated into steady sales momentum across segments.”

“Overall housing prices across the top eight Indian cities surged 10% on an annual basis in 2024. Prominent markets such as Delhi NCR and Bengaluru saw the steepest rise in average housing prices amidst rise in demand for luxury and ultra-luxury segments. Furthermore, the recent repo rate reduction along with government initiatives to fund stressed residential projects will provide boost to affordable housing segment,” said Badal Yagnik, Chief Executive Officer, Colliers, India.

Within the top cities, Delhi-NCR saw the highest rise in housing prices at 31% YoY

Delhi-NCR witnessed the highest rise amongst India’s top eight cities, with average housing prices soaring by 31% YoY. This price rise in the city is attributable to the strong sales momentum particularly in luxury & ultra-luxury segments. While Dwarka Expressway witnessed the highest annual price rise at 58%, Greater Noida too witnessed impressive growth of 52% YoY. Going forward, the upcoming Jewar International Airport will continue to spur residential prices in the catchment areas.

Moreover, annual price appreciation was notable in Bengaluru, Ahmedabad and Pune as well, led by healthy demand spurred by infrastructure upgrades in key areas of these cities. Prominent micro markets such as Periphery & Outer West in Bengaluru, and Baner & Nagar Road in Pune saw significant traction in ready to move-in units. Resultantly, average housing prices in these micro markets increased by up to 15% YoY during Q4 2024.

“The demand for luxury and ultra-luxury segments was particularly strong throughout 2024. The share of spacious dwelling units in overall housing sales have been on the rise, particularly in cities such as Bengaluru, Delhi NCR and Pune. Average housing prices of 3-4BHK apartments in these cities increased by up to 34% YoY during Q4 2024. Evolving lifestyles, desire for upscale amenities, a growing population of HNIs, and perception of luxury properties as status symbols & investment opportunities will continue to drive housing sales in premium categories in the next few quarters,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Commenting on the report, Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, saīd, “With a 31% annual price appreciation in the October-December 2024 quarter, Delhi-NCR led the housing market in growth, driven by strong demand and shifting buyer preferences. The rising inclination towards premium, well-designed homes, coupled with increasing construction costs, has propelled prices upward. This steady momentum highlights market confidence and the evolving aspiration for modern, high-quality living. As homebuyers seek better amenities and thoughtfully-planned communities, the region’s real estate sector continues to thrive, further cementing Delhi-NCR’s status as a prime residential destination.

Aman Gupta, Director, RPS Group, said, “The CREDAI-Colliers-Liases Foras report highlights a revolutionizing period in India’s residential real estate sector, characterized by record price appreciation and a sustained demand upsurge. Delhi-NCR’s 31% YoY price appreciation, fueled by luxury and ultra-luxury segments, indicates changing buyer aspirations and the strategic appeal of infrastructure projects such as the Jewar International Airport. This is not an isolated trend—metropolises like Bengaluru and Pune have shown strong growth too, driven by infrastructure development and demand for ready-to-move properties.”

The 5% decrease in unsold inventory annually, led by Pune at 14%, is an indicator of a market shifting to balance.

“We see this as a call to innovation. Increased demand for homes with more space and amenities means developers must think quality and sustainability. Although cost pressures continue, strategic land purchases and technology-based construction practices can neutralize risks. In the future, the revival of the affordable housing segment, along with possible rate reductions, will democratize home ownership. For both investors and end-users, this is a golden window to take advantage of assets with long-term value appreciation potential,” Gupta added.

Anurag Goel, Director, Goel Ganga Developments, said, “The recent housing price monitor confirms India’s real estate strength, with a 16th consecutive quarter of price appreciation and a 10% YoY increase across leading cities. Delhi NCR’s whopping 31% increase, followed by Bengaluru’s 23% gain, reflects the dominance of the luxury space, fueled by HNIs and aspirational consumers. The decline in unsold inventory—5% countrywide and 14% in Pune—discloses a maturing market in the direction of demand-supply equilibrium. At RPS Group, we believe this is the time to realign strategies. The MMR’s inventory fall after three years, combined with Hyderabad and Chennai’s development, indicates regional diversification is the way forward. Infrastructure megaprojects, such as Jewar Airport, will keep driving peripheral markets, while tier-1 cities enjoy premiumization.”

“The report’s focus on affordable housing’s revival, driven by policy interventions and rate cuts, resonates with our emphasis on inclusive growth. As builders, juggling luxury innovation and mid-segment affordability will be 2025’s calling card. Investors need to act swiftly—today’s price action is not only cyclical but structural, underpinned by India’s economic tailwind and demographic dividend,” he added.