India’s housing market has continued to exhibit steady growth in the second quarter of 2024, with average prices across the top eight cities increasing by 3 per cent quarter-over-quarter (QoQ), said an industry report.
The overall trend of 3% quarterly price appreciation has persisted for the past four quarters, indicating sustained demand, showed the report by Confederation of Real Estate Developers and Associations of India (CREDAI) and property consulting firms Lisas Foras and Colliers.
On an annual basis, average housing prices in the eight major cities rose by 12%, with Delhi NCR leading the way at 30%.
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Source: Liases Foras, Colliers
All the prices are based on carpet area
*NCR- National Capital Region
**MMR- Mumbai Metropolitan Region
“Sales across India’s cities have maintained growth despite the price rise. The current quarter also showed a remarkable 33% increase in new launches in the affordable segment. NCR’s growth in sales and new launches augurs that the market will stay on a growth trajectory.”, said Pankaj Kapoor, Managing Director, Liases Foras.
Leading the top eight cities, Delhi NCR saw a 16% QoQ rise in housing prices
At 16%, average housing prices in Delhi NCR witnessed the highest quarterly price appreciation. Within Delhi NCR, Dwarka Expressway and Greater Noida witnessed impressive price appreciation at 35% and 24% QoQ in average housing prices, respectively. This is the highest quarterly price rise for these micro markets in last few quarters and is led by the recent pick up in luxury segment launches.
Further, preference for spacious housing units in luxury & ultra-luxury segments led up-to 12% QoQ growth in average price of 3-4BHK configurations in Delhi NCR.
Bengaluru too witnessed significant price appreciation, with average housing prices in the city breaching the Rs 11,000 mark in Q2 2024. Average residential prices in the city increased by 8% on a quarterly basis.
Within Bengaluru, Inner East micro market saw the highest quarterly rise at 25% followed by Periphery Outer East micro market at 10%.
“Within the residential market, demand growth has been the strongest in luxury & ultra- luxury segments including second and vacation homes which is evident with price growth in select micro-markets of Delhi NCR and Bengaluru. Average housing prices for spacious dwelling units, particularly 3-4BHK configurations in these cities have increased up-to 30% on an annual basis. Additionally, the government’s recent partial rollback pertaining to long term capital gains arising out of sale of land and buildings retrospectively is expected to boost investors and homeowners’ sentiment and thus, the real estate sector at large,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
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Mumbai Metropolitan Region (MMR) continues to dominate the market, accounting for approximately 40% of unsold inventory.
Excluding MMR, unsold inventory levels have declined by up to 5% on a quarterly basis across all cities under review. While MMR witnessed healthy sales in residential units during Q2 2024, significant surge in new launches led to a marginal rise in unsold units.
On an annual basis with a 13% YoY drop, Pune particularly witnessed the highest annual decline in unsold units. Annual decline in unsold inventory levels have been significant in Ahmedabad, Chennai and Kolkata too with 6-8% drop.
At 5%, Kolkata saw the highest sequential decline in unsold inventory levels followed by Pune with a 3% dip. As of Q2 2024, there was an availability of over 10 lakh housing units across the primary market of eight major cities, with MMR alone having about 40% share in unsold inventory levels.
Despite yearly increase in number of unsold units in Hyderabad and Bengaluru, both cities saw a modest dip on a sequential basis.
First Published: Aug 26 2024 | 1:53 PM IST
