Delhi NCR sees biggest jump in home prices at 30%, Bengaluru prices up 23%
- IBEF
- February 27, 2025
Average housing prices in India’s top eight cities—Ahmedabad, Bengaluru, Chennai, Delhi National Capital Region (NCR), Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune—rose by 10% annually in Q4 2024. Delhi NCR recorded the highest increase at 31% YoY, followed by Bengaluru at 23%, according to a report by the Confederation of Real Estate Developers' Associations of India (CREDAI), Colliers, and Liases Foras. This marks the 16th consecutive quarter of rising prices since 2021. Demand for luxury and ultra-luxury housing will push prices further in 2025, even as affordable housing remains dominant. Strong sales momentum in premium housing, particularly along the Dwarka Expressway and Greater Noida, drove Delhi NCR’s surge, with 58% and 52% YoY price increases, respectively. Infrastructure upgrades also spurred notable growth in Bengaluru, Ahmedabad, and Pune, with micro-markets such as Outer West Bengaluru and Baner in Pune witnessing price hikes of up to 15% YoY in Q4 FY24.
Unsold inventory declined for the fourth straight quarter, dropping 5% YoY, with total unsold units falling below 10 lakh for the first time in two years. Pune saw the highest drop-in unsold units at 14% YoY, followed by Hyderabad at 13%. MMR’s inventory levels declined after nearly three years to 3.9 lakh units. The demand for larger homes in cities such as Bengaluru, Delhi NCR, and Pune led to a 34% YoY price increase for 3-4BHK apartments. Although new launches moderated in Q4 FY24, demand for affordable and mid-segment housing is expected to rise, shifting the market composition that has favoured luxury housing for the past four years. Industry experts believe evolving consumer preferences, rising land and construction costs, and a potential interest rate reduction will continue to drive housing demand in the coming quarters.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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