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- Housing prices on the upswing for the 16th consecutive quarter
- Delhi NCR saw more than 30% annual housing price rise, highest rise amongst top 8 Indian cities
- Overall unsold inventory dropped 5% on an annual basis
- Pune saw the highest annual drop in unsold inventory at 14%, closely followed by Hyderabad with 13% decline
Mumbai, India, 25 February 2025: 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. 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.
Mr. Boman Irani, President of CREDAI National stated, “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. While evolving preferences and lifestyle upgrades remain key motivators, cost pressures in construction and land acquisition are also significantly contributing to pricing trends. As we look ahead, a potential reduction in interest rates could further boost affordability and drive even greater demand. This positive trend is expected to continue and thrive through the year, making it an opportune time for homebuyers to invest in real estate.”
“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. Going ahead, with elbowroom for further reduction in benchmark lending rates, most cities are likely to witness traction in housing sales across categories. Resultantly, average residential prices can potentially increase at similar levels in 2025 on an annual basis. “ added, Badal Yagnik, Chief Executive Officer, Colliers, India.
Pan India residential price trends (in INR/sq ft)-
| City | Average Price Q4 2023 | Average Price Q1 2024 | Average Price Q2 2024 | Average Price Q3 2024 | Average Price Q4 2024 | QoQ Price change (Q4 2024 vs Q3 2024) | YoY Price change (Q4 2024 vs Q4 2023) |
| Ahmedabad | 6,737 | 7,176 | 7,335 | 7,640 | 7,725 | 1% | 15% |
| Bengaluru | 9,976 | 10,377 | 11,161 | 11,743 | 12,238 | 4% | 23% |
| Chennai | 7,701 | 7,710 | 7,690 | 7,889 | 8,141 | 3% | 6% |
| Delhi NCR* | 9,170 | 9,757 | 11,214 | 11,438 | 11,993 | 5% | 31% |
| Hyderabad | 11,083 | 11,323 | 11,290 | 11,351 | 11,351 | 0% | 2% |
| Kolkata | 7,912 | 7,727 | 7,745 | 7,616 | 7,971 | 5% | 1% |
| MMR** | 20,047 | 20,361 | 20,275 | 20,438 | 20,725 | 1% | 3% |
| Pune | 9,185 | 9,448 | 9,656 | 9,890 | 9,982 | 1% | 9% |
Source: Liases Foras, Colliers
All the prices are based on carpet area
*NCR- National Capital Region | **MMR- Mumbai Metropolitan Region
“Sales witnessed a marginal decline, led by moderated new launches in the last quarter. We anticipate a growth in affordable and mid-segment supply and sales going forward, which will change the composition of supply, which has been skewed towards the luxury segment for the last four years”, said Pankaj Kapoor, Managing Director, Liases Foras.
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.
Pune witnessed highest YoY drop in unsold units at 14%, MMR witnessed a drop in inventory levels after nearly 3 years
During Q4 2024, all the top eight Indian cities saw a decline in unsold inventory levels. Pune experienced the sharpest drop at 14% YoY, closely followed by Hyderabad at 13%. Chennai and Kolkata too recorded a 7-10% YoY decrease. Interestingly, unsold inventory levels in the MMR dropped after almost three years to around 390,000 units at the end of 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.
