House prices in this Delhi-NCR area to rise 69% in Q2 2024; know how much property prices have increased in your city

According to a report published by CREDAI, Colliers and Liases Foras, average house prices across the top eight cities rose 12% year-on-year in Q2 2024, supported by robust demand momentum. Seven of the eight cities saw an increase in house prices (year-on-year), with Delhi NCR recording the highest increase, followed by Bengaluru.

According to the report, residential home prices in the Delhi-National Capital Region (Delhi-NCR) rose 30% year-on-year during the April-June quarter of 2024, the highest among India’s eight major cities. In the Delhi-NCR region, average home prices rose 69% in Dwarka Expressway during the quarter under review. Meanwhile, average home prices soared 45% year-on-year in Greater Noida during the second quarter of 2024, the report said. “Both markets saw select top-of-the-line projects by leading developers during the quarter within the luxury and ultra-luxury segments,” the report noted.

Bengaluru ranked second on the list as home prices rose 28% YoY in the southern city, the report said. In Bengaluru, “the Outer East and Periphery micro markets witnessed the highest price increase at 42% YoY. The ongoing metro extensions and upcoming suburban rail projects are likely to further boost residential activity, especially in the Inner East and Periphery and Outer North micro markets,” the report added. “1BHK apartments continued to see healthy demand, with prices rising 44% YoY, followed by 4BHK configurations with a 29% YoY increase,” the report said.

“Housing prices rose 13 per cent YoY amid significant traction in the mid-segment. With upcoming infrastructure developments such as Ahmedabad Metro Phase 2, City Square on Sindhu Bhavan Road and the recent collaboration with ADB to develop the city’s peri-urban areas, Ahmedabad is likely to witness increased residential activity in the coming years. The micro-markets of City Central West and Eastern Suburb saw the highest year-on-year price increase at 16 per cent and 14 per cent respectively,” the report mentioned.

Boman Irani, President, CREDAI National, said, “India’s real estate market has seen some pick-up over the last few quarters, as evidenced by the transaction volume across all eight major cities, as well as the prevailing positive sentiments towards housing. There has been a direct impact on housing prices, signifying not just the underlying demand, but the definite shift towards real estate as a preferred asset class. With the upcoming festive season, coupled with the government’s focus on infrastructure and a relatively stable lending ecosystem, we project this boost to have a further impact on both prices and unsold inventory levels, as the industry’s supply-demand dynamics change.”

Residential property prices in India in Q2 2024

Source: Liases Foras, Colliers
All prices are based on carpet area.
*NCR- National Capital Region
**MMR-Mumbai Metropolitan RegionBadal Yagnik, CEO, Colliers India, said, “It is noteworthy that average house prices have witnessed a consistent double-digit annual growth rate (12% in Q2FY24), reinforcing the sustained growth story of the residential real estate sector. Moreover, the upcoming festive season will further boost the real estate market with increased sales and new launches. Hence, we are expecting a strong end to the real estate market in 2024.”

Unsold inventory decreased in seven of the eight cities on a quarterly basis

Apart from the Mumbai Metropolitan Region (MMR), unsold inventory levels declined by up to 5% on a quarterly basis across all cities analysed. At 5%, Kolkata recorded the largest sequential decline in unsold inventory levels, followed by Pune with a 3% drop. As of Q2FY24, there was a vacancy of over 10 lakh housing units in the primary market across eight major cities, with the MMR alone holding a share of around 40% in unsold inventory levels, the report said. “While MMR witnessed healthy sales in residential units during Q2 FY24, a significant rise in new launches led to a marginal increase in unsold units. On a year-on-year basis, with a 13% year-on-year decline, Pune in particular witnessed the highest year-on-year decline in unsold units. The year-on-year decline in unsold inventory levels has also been significant in Ahmedabad, Chennai and Kolkata with a 6-8% decline,” the report added.

Vimal Nadar, Senior Director and Head of Research, Colliers India, says, “Within the residential market, demand growth has been strongest in the luxury and ultra-luxury segments, including second homes and holiday homes, which is evident from rising prices in select micro-markets of Delhi NCR and Bengaluru. Average home prices for spacious housing units, particularly 3-4BHK configurations in these cities, have increased by up to 30% year-on-year. Additionally, the recent partial reduction by the government related to long-term capital gains arising on sale of land and buildings on a retrospective basis is expected to improve investor and homeowner sentiment and thereby the overall real estate sector.”