Housing Prices In Delhi-NCR, Bengaluru Surge 29% During July-September: Reports

In Delhi-NCR, the average price of residential properties rose to Rs 7,200 per square foot in the third quarter, up from Rs 5,570 per square foot a year earlier

Housing prices in Delhi-NCR and Bengaluru surged by 29 per cent year-on-year in the July-September quarter, driven by strong demand, rising input costs, and an increase in the supply of luxury homes, according to data from Anarock.

In Delhi-NCR, the average price of residential properties rose to Rs 7,200 per square foot in the third quarter, up from Rs 5,570 per square foot a year earlier. Similarly, Bengaluru experienced a 29 per cent increase, with prices reaching Rs 8,100 per square foot, compared to Rs 6,275 per square foot during the same period last year.

Hyderabad recorded the highest price increase, at 32 per cent, with average prices climbing to Rs 7,150 per square foot from Rs 5,400. In the Mumbai Metropolitan Region (MMR), housing prices increased by 24 per cent, reaching Rs 16,300 per square foot, up from Rs 13,150. 

Pune saw a 16 per cent rise in prices to Rs 7,600 per square foot, up from Rs 6,550, while Chennai experienced a similar 16 per cent appreciation, with prices rising to Rs 6,680 from Rs 5,770. In Kolkata, average housing prices grew by 14 per cent, reaching Rs 5,700 per square foot, compared to Rs 5,000 per square foot in the previous year.

Darshan Govindaraju, Director of Bengaluru-based realty firm Vaishnavi Group, said, "The average increase in residential property prices is a continuation of a trend seen since the last few quarters and is primarily due to increase in input costs, including land acquisition and construction costs, along with the growing weightage of premium and luxury properties in the overall sales bucket.”

"This is shooting up the median housing prices in Bengaluru in line with the increase in prices across other cities," he added. Angad Bedi, CMD of BCD Group, attributed the price increase to several factors, including infrastructure development, strong economic activity, and a growing demand for premium housing.

"Additionally, a limited housing supply and inflationary pressures are contributing to the price rise," he said.

Bedi also warned that ongoing price increases could ultimately impact affordability and disrupt demand patterns in the long run. According to Anarock, average residential property prices across the top seven cities rose by 23 per cent annually, increasing from Rs 6,800 per sq ft in Q3 2023 to Rs 8,390 per sq ft in Q3 2024.

The consultant's data revealed an 11 per cent decline in housing sales during July-September, with total sales dropping to 107,060 units from 120,290 units a year earlier. The top seven cities experienced a 19 per cent decrease in new housing supply, with 93,750 units launched in July-September 2024 compared to 116,220 units in the same period in 2023.

"Nevertheless, the fact that sales remained higher than launches indicates that the demand-supply equation remains robust," Anarock Chairman Anuj Puri said.” He noted that housing sales in the third quarter slowed down due to high prices and the monsoon season. As expected during this period, the 'shraad' phase also dampened demand somewhat, as many Indians postponed home purchases.

Puri added that the housing market is stabilising after reaching a new peak in January-March 2024. Anarock indicated that developers have several projects lined up for the festive quarter (October-December), when an uptick in demand is expected.