Delhi NCR Home Prices Surge 30%, Bengaluru Up 23%

The broad average housing price across India’s eight cities, namely Ahmedabad, Bengaluru, Chennai, Delhi N.C.R, Hyderabad, Kolkata. MMR, and Pune, rose by 10 percent a year on year in the last quarter of 2024. At the same time, Delhi N.C.R. averaged a more than 30 percent yearly growth in housing price, which is the highest among the eight cities. This was reported by CREDAI and property consulting firm Colliers alongside Liases Foras.

Between 2021 and now, average prices across housing segments in these cities rose for the past 16 quarters, which is two and a half years. Growth was present across all the 8 major cities, with Delhi NCR having the biggest increase at 31% YoY followed closely by Bengaluru having a 23% YoY increase in Q4 2024. Although affordable housing will still make the greater part of housing sales, the demand for luxury and extreme segments is expected to increase significantly in 2025. Moving forward, prices in these segments are likely to push average housing prices up in most of the country’s major residential markets over the next few quarters.

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The total amount of unsold stock continued to fall for the fourth time in a row, decreasing by 5% year over year.Inrest DCB’s unsold stocks dropped below 10 lakh housing units by the end of December 2024 further supported by sound demand. MMR, with a share of 40%, continued to represent the largest portion of the market’s unsold inventory. Pune registered the highest decrease in unsold inventory on a yearly basis in the country, which was 14% and was closely followed by Hyderabad which also saw a decrease of 13%.

“India's housing market is thriving, as indicated by the increment of housing prices across the major cities. This astounding figure can be backed by the relative willingness and trust exhibited by the homebuyers. The homebuyer’s trust has resulted in a lifestyle shift towards larger homes and better amenities, which further combines with their increasing level of expenses. The cumulative effect of these factors is what is pushing industry sales to newer heights, which in turn drives the positive market sentiments surrounding the industry. This, alongside the recent increase in land and construction prices, is greatly affecting the market. However, the sustained depreciation of construction prices alongside a growing economy suggests that there is more optimism to come. Looking ahead, a drop in interest rates will further motivate spending, emerging as a strong strategy for the time period, enabling homebuyers to enjoy the benefits of a favorable investment stream," remark Boman Irani, President of CREDAI National. Delhi NCR has witnessed a spike in housing prices by 31% YoY, which is the highest among the other metropolitan regions.

Delhi NCR has experienced the largest annual increase in housing prices among the other eight major cities of India. Dwarka express also experienced the highest price appreciation in comparison to Greater Noida where it stands at 58% YoY mark. Greater Noida also recorded a phenomenal price appreciation of 52% YoY. The boom in demand from the ultra and luxury segments can also account for a number of increasing sales which are prompting new record levels in the yearly growth rates," endured above the average 31% YoY."

In the future, the new Jewar International Airport is expected to increase the price of residential properties in the vicinity further. 

Similarly, the annual price increase was remarkable in Bengaluru and also in Ahmedabad and Pune due to substantial demand coming from infrastructure developments in these cities. Key micro markets like Periphery & Outer West in Bengaluru, and Baner & Nagar Road in Pune had healthy sales in new construction ready-to-occupy apartments. As a result, the average prices of housing in these micro markets rose by up to 15 percent year over year during the fourth quarter of 2024.

During the last quarter of 2024, the MMR had the highest YoY increase in unsold units at 14%, while Pune unsold stock during the period had dropped after almost three years. 

Throughout the last quarter of 2024, the remaining eight major Indian cities saw an increase in unsold stock. The highest was noted in Pune with YoY drop 14%, closely followed by Hyderabad at 13%. Weiss and Chennel too posted 7-10% in the rest of the years. Unsold stock in MMR unexpectedly dropped from around 390,000 at the end of 2024 after nearly three years.

“Throughout 2024, there was especially a strong demand for spacious and very spacious segments. 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 almost 34% Year over Year during Q4 2024. Increased spending on lifestyles, a growing population of HNIs, and the perception of luxury properties as investments will continue to drive housing in premium categories in the coming quarters,” remarked Nadar Vimal, Senior Director and Head of Research Colliers India. 

“We saw a marginal decline, primarily due to the slower pace of new launches in the last quarter. However, we expect an increase in the supply and sales of affordable and mid-segment, which have been concentrated towards the luxury segment for the last four years,” added Pankaj Kapoor, Managing Director Liases Foras. 

Average Housing Prices: Key takeaways 

10 percent increase annually in the quarter four if 2024 concerning the 8 largest cities in India. 

Average price reached and surpassed Rs 11,266 per sq ft. 

Growth fueled by steady demand and a positive outlook on the market.

Annual Growth of Housing Prices On A City Basis:  All eight cities recorded a year-on-year growth in housing prices. The addition of Delhi NCR registered the largest increase of 31% YoY. Bengaluru came next with a 23 YoY Percentage Point Increase.  Overall unsold inventory declined by 5% on a yearly basis.  There was also a quarterly drop in unsold inventory for the fourth consecutive quarter.  New Delhi NCR experienced the largest increase.  All cities reported a decrease in unused stock, thereby meeting the growing demand.  The largest annual decrease was recorded by Pune at 14% whereas Hyderbad tallied a 13% Year on Year decrease.