Average Home Prices In India Jumps 10% In First Quarter Of 2024: Study

Bengaluru had the most significant price surge, with a 19 per cent increase to Rs 10,377 per square foot, up from Rs 8,748 per square foot in the previous quarter of last year

Average home prices in India's leading eight cities rose 10 per cent in the January-March quarter this year compared to the corresponding period of the previous calendar year, according to the CREDAI—Colliers—Liases Foras Housing Price-Tracker Report Q1 2024, released on Thursday.

"The surge in housing prices is a direct consequence of the robust housing demand that we’re witnessing, especially in premium and luxury housing, by homebuyers across the country," said Boman Irani, president of CREDAI National, referring to the report's findings.

"These are directly linked to not just a stable lending ecosystem but also the emergence of various micro-markets that have been the primary beneficiaries of significant infrastructural projects, which have altered the demand-supply dynamics in residential real estate. We do not foresee this momentum slowing down in FY24/25 as well."

Bengaluru had the most significant price surge, with a 19 per cent increase to Rs 10,377 per square foot, up from Rs 8,748 per square foot in the previous quarter of last year. Among the city's micro-markets, the Periphery and Outer East area experienced the highest surge at 32 per cent. The Periphery and Outer North region followed closely behind, with an 18 per cent annual growth in average housing prices.

In the Delhi-National Capital Region, prices surged 16 per cent to Rs 9,757 per square foot, up from Rs 8,432 per square foot the previous year. Within Delhi, the highest increase was observed along the Dwarka Expressway, registering a 23 per cent rise. Ahmedabad and Pune followed suit, each experiencing a 13 per cent increase, reaching Rs 7,176 per square foot and Rs 9,448 per square foot, respectively.

Unsold inventory rose 3 per cent across the top eight cities, indicating that the demand for homes lagged behind the supply. As of Q1 2024, the unsold inventory in these cities was close to 1 million units, with the Mumbai Metropolitan Region alone accounting for nearly 40 per cent of the share.