Housing Prices Surge 11% in 8 Cities, Delhi-NCR Leads with 32% Rise

New Delhi, Dec 2 (PTI) India's eight major residential markets saw an average 11 per cent increase in prices annually during the September quarter on strong housing demand, with Delhi-NCR witnessing the highest appreciation at 32 per cent, according to a report.

The average housing prices have increased for the 15th consecutive quarter since 2021, said a joint report by realtors' apex body CREDAI, real estate consultant Colliers and data analytic firm Liases Foras.

"Average housing prices across the top eight markets in India rose 11 per cent Y-o-Y (year-on-year) at Rs 11,000 per square feet during Q3 (July-September) 2024, led by sturdy demand and positive market sentiments," the report said.

According to the data, all eight major cities saw an annual increase in housing prices.

The Delhi-NCR market recorded the highest increase in housing prices, with an average rise of 32 per cent to Rs 11,438 per square feet during July-September this year, from Rs 8,655 per square feet in the same period last year.

In Bengaluru, the rates appreciated 24 per cent to Rs 11,743 from Rs 9,471 per square feet (sq ft). All the prices are based on carpet area.

The average housing prices in Ahmedabad grew 16 per cent to Rs 7,640 from 6,613 per sq ft.

In Pune, the rates were up 10 per cent to Rs 9,890 from Rs 9,014 per sq ft.

Mumbai Metropolitan Region (MMR) saw a 4 per cent average increase in prices to Rs 20,438 per sq ft from Rs 19,585 per sq ft.

The average housing prices in Hyderabad rose 3 per cent to Rs 11,351 from Rs 11,040 per sq ft. In Kolkata also, the average rate increased 3 per cent to Rs 7,616 per sq ft from Rs 7,406 per sq ft.

Chennai saw an average appreciation of 2 per cent to Rs 7,889 per sq ft in July-September from Rs 7,712 per sq ft in the year-ago period.

Commenting on the trend, CREDAI National President Boman Irani said, "The ongoing rise in housing prices is another validation of positive homebuyer sentiments and the highly conducive nature of the real estate market."

Pankaj Kapoor, Managing Director of Liases Foras, noted that sales and prices continue to grow, suggesting affordability and demand are intact.

"The luxury segment is still dominant, although we have been seeing a gradual reduction in new launches," he added.

While MMR, Pune, and Hyderabad are reaching a plateau in sales and supply, the Delhi-NCR market, Chennai, and Tier 2 cities have a deficient supply level, Kapoor said.

With the continuous rise in housing prices, Colliers India Chief Executive Officer Badal Yagnik said the likely easing of monetary policy and anticipated repo rate cuts can potentially bring financial relief to homebuyers in the near term.

On the sharp rise in prices across the Delhi-NCR housing market, Gurugram-based property consulting firm InfraMantra founder Shiwang Suraj said, "The homebuying sentiments are extremely positive at this moment across all major markets and more so in Delhi-NCR"

The current festive quarter might further propel sales thereby stabilizing the annual absorption and supply numbers to previous years, he added.

Vijay Harsh Jha, Founder and CEO of property brokerage firm VS Realtors, said, "The 32 per cent Y-o-Y increase in home prices in Delhi-NCR is reflective of the strong demand in markets like Gurugram and Noida, particularly. The rise in prices is both a play of demand and supply.