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Buoyant demand drives average housing prices, 10% YoY growth across eight major Indian cities: CREDAI – Colliers – Liases Foras

by Construction Xperts
written by Construction Xperts

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)-

CityAverage Price Q4 2023Average Price Q1 2024Average Price Q2 2024Average Price Q3 2024Average Price Q4 2024QoQ Price change (Q4 2024 vs Q3 2024)YoY Price change (Q4 2024 vs Q4 2023)
Ahmedabad6,7377,1767,3357,6407,725 1%15%
Bengaluru9,97610,37711,16111,74312,2384%23%
Chennai7,7017,7107,6907,8898,1413%6%
Delhi NCR*9,1709,75711,21411,43811,9935%31%
Hyderabad11,08311,32311,29011,35111,3510%2%
Kolkata7,9127,7277,7457,6167,9715%1%
MMR**20,04720,36120,27520,43820,7251%3%
Pune9,1859,4489,6569,8909,9821%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. 

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Chennai’s Path to Sustainability: Insights from IGBC and CREDAI’s Green Building Symposium

by Construction Xperts
written by Construction Xperts

Grounded in the ancient wisdom of Panchabhuta, the Indian Green Building Council (IGBC) continues to lead the charge towards sustainable development in Chennai and beyond. With a mission that transcends conventional boundaries, IGBC weaves together the elements of Earth (Prithvi), Water (Jal), Fire (Agni), Air (Vayu), and Space (Akasha) into a tapestry of sustainable design principles.

In collaboration with CREDAI, IGBC’s initiative is poised to pave the way for millions to find purposeful work in a greener, more sustainable future, aligning closely with IGBC’s mission while celebrating CREDAI’s 25 years anniversary. At the heart of IGBC’s endeavor lies the belief that by harmonizing Energy, Earth, and Expanses, environments can be cultivated to nurture both humanity and the planet. Encouraging green buildings goes beyond mere construction; it fosters an entire ecosystem of sustainability where allied industries such as renewable energy, sustainable materials manufacturing, and green technology development thrive. 

This vibrant gathering consisted of industry pioneers, policymakers, and advocates such as Chief Guest, Mr. G S Sameeran, IAS, Joint Commissioner (Works), Greater Chennai Corporation, Guest of Honor, Mr. Sridharan Swaminathan, National VP, South Zone, CREDAI, Dr. T Arul, Executive Committee, CREDAI, Chennai, Ar. C N Raghavendran, Managing Director, CRN & Past Chairman IGBC – Chennai Chapter, Ajit Kumar Chordia, Chairman, IGBC – Chennai Chapter, Mr. Mahesh Anand, Co-Chairman, IGBC – Chennai Chapter, Mr. Sampath Kumar, Senior Counsellor, CII – IGBC and Mr. K V Sreedatta, Associate Counsellor, IGBC Secretariat, who discussed on Chennai’s journey towards a greener, more sustainable future.

Mr. Sridharan Swaminathan, National VP, South Zone, CREDAI, emphasized, “Green buildings foster an ecosystem of sustainability, and is not just about its construction. They catalyse allied industries like renewable energy and green technology, creating job opportunities in various roles. CREDAI’s initiative, aligned with IGBC, aims to create a greener, more sustainable future, celebrating CREDAI’s 25 years anniversary and registering projects that integrate these norms.”

In today’s urban landscape, optimizing space utilization and extending the lifespan of buildings are paramount considerations. Beyond technological advancements and sustainable materials, the local context plays a crucial role in green building initiatives. The emphasis shifts towards constructing buildings capable of outliving their typical tenure, embracing flexibility in design and functionality.

Mr. G S Sameeran, IAS, Joint Commissioner (Works), Greater Chennai Corporation shared his thoughts saying, “Green buildings, not only reduce environmental impact but also benefit communities, emphasizing the need for society-wide integration of sustainable practices beyond government mandates. This holistic approach ensures buildings serve both their immediate purpose and contribute positively to the environment and society in the long term”. He also highlighted the importance of optimizing space and prolonging building lifespans in today’s urban landscape. He stressed the significance of local context in green building initiatives, advocating for flexible designs and functionality.”

Central to the event’s agenda, Mahindra World City received a Platinum Plaque for its exemplary commitment to green practices, under the IGBC Green Township Rating System. Urbanrise, a Founding Member of IGBC, was recognized for joining the Green Building Movement and showcase their unwavering dedication to sustainable development.

In the spirit of collaboration and innovation, the event fostered enriching discussions with a technical session on critical themes such as Addressing the Urban Heat Island Effect & Urban Landscaping and Planning, Exploring Sustainable Architectural Planning & Low-carbon Design Materials for enhanced daylighting & ventilation and Understanding IGBC Standards, Energy Saving Methodologies, and the transition towards Net Zero. 

As Chennai progresses towards a sustainable future, IGBC remains at the forefront, championing green development and paving the way for a brighter tomorrow.

About the Indian Green Building Council: 

IGBC was established by the Confederation of Indian Industry (CII) in 2001 to actively promote the Green Building concept in India. The Council is represented by all stakeholders of the construction industry comprising corporate, government, and nodal agencies, architects, product manufacturers, institutions, and more. The Council also closely works with governments, the World Green Building Council, and bilateral and multilateral agencies to promote green building concepts in India. 

With a Green Building footprint of 11.62 billion sq ft, and with over 13,560 projects adopting IGBC’s 32 rating systems, the Green Building movement in India has been advancing at a rapid pace and transforming India into one of the global leaders in green built environment. IGBC’s current stakeholder ecosystem consists of 29 Local Chapters across the nation, 7100+ Accredited Professionals (IGBC APs), and 360+ student chapters.

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Rise in housing prices in Q2 2023: CREDAI – Colliers – Liases Foras

by Construction Xperts
written by Construction Xperts

During Q2 2023, housing prices in India’s top eight cities increased 7% YoY. Over the last 10 quarters, there has been a consistent upward trend in housing prices across the country led by robust demand.

Housing prices across the top eight cities1 in India increased 7% YoY amid robust housing demand backed by continued positive homebuyer sentiment and stable interest rates. Kolkata recorded the highest increase in residential prices at 15% YoY, followed by Delhi NCR and Hyderabad with 14% and 13% YoY increase respectively. Fueled by a continued desire for home ownership and stable interest rates, coupled with growth in disposable incomes, housing demand is poised for steady growth even amid unprecedented global economic headwinds.

Boman Irani, President of CREDAI National stated,

“The ongoing momentum in quantum of sales across the country is a clear reflection of positive homebuyer sentiments and validates the conducive nature of the market. We’re also witnessing record breaking numbers due to the pent-up demand from covid and despite the price rise, we expect this trend to continue for the rest of the fiscal year – on the back of a relatively stabilized repo rate and lending eco-system. Additionally, the upcoming festive season will help in further boosting the sales and sustain the momentum through the start of 2024.”

In tandem with sales, top markets have also seen heightened activity in new launches in the past few quarters. As a result, unsold inventory expanded by 13% YoY Pan India. Noteworthily, Delhi NCR witnessed a drop in unsold inventory levels at 7% YoY, signaling a consistent revival in market fundamentals. With increased demand for spacious dwellings, developers continue to launch high-end projects, which has pushed housing prices for under construction units northwards in markets like Kolkata, Hyderabad, Delhi NCR and Bengaluru. 

“Over the last 10 quarters, there has been a consistent upward trend in housing prices across the country. With repo rate stabilizing since February 2023 at 6.5%, homebuyers‘ sentiments remain positive due to greater visibility on monthly EMIs. While developers continue to grapple with the challenges of higher costs of construction, housing demand remains unwavered. Housing demand is likely to further accelerate in the next few quarters led by the upcoming festive season and continued preference for home ownership,” 

 said Peush Jain, Managing Director, Occupier Services, Colliers India.

Pan India residential prices Q2 2023 (in INR/sq ft) –

City Average Price Q2 2023QoQ Change  YoY Change
 Ahmedabad 6,507  3%10% 
 Bengaluru 8,688 -1% 10%
 Chennai 7,653 3% 6%
 Delhi NCR 8,652 3% 14%
 Hyderabad 10,530 1% 13%
 Kolkata 7,315 1% 15%
 MMR 19,111 -1% -3%
 Pune 8,540 2% 11

Source: Liases Foras, Colliers

All the prices are based on carpet area

“Factors like improved infrastructure, enhanced connectivity, rising disposable income, and government incentives have fueled housing demand across Indian cities. While most cities saw double-digit price increases during Q2 2023, Delhi NCR is consistently seeing an uptick in housing prices for the past 12 quarters. Notably, the newly developed Dwarka Expressway and the upcoming 50 km 6-lane highway in Delhi NCR are expected to further drive demand in Gurugram, Ghaziabad and Noida. Amidst other major cities, prominent micro-markets in MMR saw a price rise of 3-5% YoY,”

said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Highest housing price rise in Kolkata at 15% YoY, followed by Delhi NCR

In Q2 2023, overall housing prices in Kolkata witnessed a 15% YoY rise, highest across the top eight cities in India. Housing prices in the city have been on the rise over the past seven quarters. The recent surge in housing prices is owing to the rising demand boosted by positive government incentives such as extension of 2% reduction in stamp duty and extension of 10% reduced circle rates till September 2023. 

Just few paces behind Kolkata, Delhi NCR witnessed a 14% YoY rise in housing prices during Q2 2023. At the micro-market level, Golf Course Road and Dwarka Expressway witnessed the highest rise in housing prices at 46% and 40% respectively on YoY basis. Housing prices in Golf Course Road continue to surpass the prices of Delhi in Q2 2023 attributed to its improving connectivity and proximity to commercial office hubs in Gurugram, which have sparked a surge in demand for residential properties.

Unsold inventory drops 7% YoY in Delhi NCR; only city in Pan India to witness a drop

The unsold inventory in Delhi NCR dropped 7% YoY, resulting to be the only city in Pan India to witness a drop, indicating continued healthy market dynamics. Unsold inventory in Delhi NCR has been witnessing a drop for the last two quarters, signaling positive consumer buying sentiment. On the other hand, led by a spurt in new project launches, particularly in the Northwest suburb in Ahmedabad and Southwest micro market in Hyderabad, the two cities saw a surge in unsold inventory levels in by 26% and 24% respectively on YoY basis. Despite increase in unsold inventory, housing prices in both the cities have consistently shown a rise over the past few quarters. 

Housing prices in Bengaluru rise 10% YoY, amidst healthy demand momentum

Housing prices in Bengaluru surged 10% YoY during Q2 2023, with prices in Periphery and Outer West micro markets witnessing the highest rise of 42% YoY led by upcoming high-end projects. Housing prices of 3 BHK units surged the highest at 12% YoY followed by 2 BHK units owing to the rising demand for mid-segment residential properties. 

“The housing market has maintained its prudence and discipline primarily due to a high number of new launches over the last year, and momentum is continuous. Increasing supply has kept the price rise moderate and productive, drawing both the end user and long-term investors. Sales will likely continue to grow since the affordability and prices maintain parity”,

said Pankaj Kapoor, Managing Director, Liases Foras.

About CREDAI
The Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body of private Real Estate developers in India, established in 1999, with a vision of transforming the landscape of the Indian Real Estate industry and a mandate to pursue the cause of Housing and Habitat. Today, CREDAI represents 13000+ Developers across 221 city chapters in 21 states and plays an important role in policy formulation by representing the views of its members to various Ministries at regular intervals.

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $99 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

About Liases Foras

Liases Foras, founded in 1998, is the only non brokerage real estate research company in India. Data and science form the core of its services, ranging from providing market intelligence and risk advisory to lenders and mortgage companies to providing development advice, best use, and valuations to developers, funds, banks, and corporations.

Liases Foras’s expertise lies in real estate pricing with a strong focus on understanding price dynamics and analyzing any underlying risks. 

Liases Foras is well acknowledged as leading real estate research and analytics consultant. Their clients have been hugely benefited from the robust database on real estate markets in India. The database is built using data collected since 2003 and covers 60 cities across India.

Liases Foras has an organized and structured data source on real estate projects, developers & their trends in India, which is updated every quarter through a primary market survey. 

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