Average housing prices up 10% in Jan-Mar across the top eight cities

• The average housing prices have increased by 10% annually in the top eight cities during the first three months of 2024.
• Bengaluru leads the country with a price hike of 19%, followed by Delhi-NCR, Hyderabad, and Pune.
• The prices could further increase by 10-15%, according to analysts.

The average housing prices appreciated 10% annually across the top eight cities during January-March this year with Bengaluru witnessing a maximum increase of 19%, according to a report. Prices across these eight cities have risen in a range of 4% to 19%, realtors' body CREDAI, real estate consultant Colliers India, and data analytic firm Liases Foras said in a joint report.

As per the report, average housing prices in Bengaluru rose 19% annually to ₹10,377 per square feet in January-March 2024, from ₹8,748 per square feet in the same period last year.

"In the top 8 cities of India, property prices have seen a notable 10% year-on-year increase, alongside strong sales, and new supply introductions," said Pankaj Kapoor, Managing Director, Liases Foras.

Bengaluru comes out on top with a 19% increase in housing prices, followed by significant escalations in Delhi NCR, Hyderabad, and Pune, he added.

Change in housing prices


"Factors like luxury demand, upcoming infrastructure projects, and strategic launches drive these increases," Kapoor said.

With moderate inflation and interest rates, the real estate sector is expected to maintain demand due to affordability. "The prices could increase by 10-15%, bridging the gap between affordability and inflation-adjusted prices," Kapoor said.

Boman Irani, President of CREDAI National, said, the surge in housing prices is a direct consequence of the robust housing demand, especially in premium and luxury housing, by homebuyers across the country.

"These are directly linked to not just a stable lending ecosystem but also the emergence of various micro-markets that have been the primary beneficiaries of significant infrastructure projects - which has altered the demand-supply dynamics in residential real estate and we do not foresee this momentum to slow down in FY 24/25 as well," Irani said.

As per the data, housing prices in Delhi-NCR saw a 16% increase to ₹9,757 per square feet. In Ahmedabad and Pune, rates rose 13% annually to 7,176 per square feet and ₹9,448 per square feet, respectively. Housing prices in Hyderabad grew 9% to ₹11,323 per square feet, while rates in Chennai went up 4% to ₹7,710 per square feet.

In Mumbai Metropolitan Region (MMR), the prices appreciated by 6% to ₹20,361 per square feet.

Housing prices in Kolkata increased 7% to ₹7,727 per square feet during the January-March period of 2024, from ₹7,211 per square feet in the year-ago period.

Badal Yagnik, Chief Executive Officer, Colliers India, said, "Residential real estate in India continued to benefit from positive sentiments. This upward trend reflects the resilience and dynamism of the residential sector, buoyed by factors such as stable repo rates and infrastructure upgrades across most of the major Indian cities."

With prospects of a reduction in benchmark lending rates in the ongoing fiscal year, he said affordability can improve in the near term, especially for EMI-dependent home buyers.

With inputs from PTI.