Average housing prices across India’s top eight markets surged by 10% year-on-year in the last quarter of 2024. This growth marks the 16th consecutive quarter of price increases, driven by robust demand and favorable market sentiment. Notably, Delhi NCR experienced the highest price growth at 31%, while Bengaluru followed with a 23% increase. The luxury and ultra-luxury segments are expected to see further momentum in 2025.
- Average housing prices across top Indian markets rose 10% YoY in Q4 2024.
- Delhi NCR and Bengaluru led the price surge, with 31% and 23% increases, respectively.
Strong Demand Fuels Housing Price Growth
The real estate sector in India has demonstrated remarkable resilience, with average housing prices climbing for 16 consecutive quarters. The latest figures from Q4 2024 reveal a 10% year-on-year increase across the top eight markets, showcasing a robust recovery from the pandemic’s economic impacts. The notable rise in average housing prices can be attributed to a combination of healthy demand momentum and a resurgence of positive market sentiment. Particularly, Delhi NCR has emerged as a frontrunner, witnessing a staggering 31% year-on-year increase in housing prices. This growth trajectory highlights the increasing desirability of urban living and spacious accommodations in metropolitan areas.
Meanwhile, Bengaluru follows closely with a 23% increase, reflecting the city’s tech-driven economy and its appeal to young professionals. As homebuyers increasingly seek larger homes with better amenities, the demand for luxury and ultra-luxury properties is expected to amplify further in 2025. Additionally, the ongoing decline in unsold inventory—down 5% annually—demonstrates the strengthening market conditions and the growing confidence among investors and homebuyers alike. With unsold inventory now below 10 lakh units for the first time in two years, the market is poised for continued growth.
Future Trends in the Housing Market
As we look towards 2025, the outlook for India’s housing market remains optimistic. Experts believe that the current trends will continue, potentially leading to further increases in average residential prices. Boman Irani, President of CREDAI National, emphasizes that evolving consumer preferences, such as the desire for spacious living and integrated communities, will drive demand across various segments. He notes that while affordable housing will continue to dominate sales, the luxury segment is poised for significant traction.
The potential reduction in interest rates could enhance affordability for homebuyers, further stimulating demand across all categories of housing. As government initiatives support stressed residential projects, the affordable housing segment may also receive a much-needed boost. Badal Yagnik, CEO of Colliers India, reinforces this perspective, suggesting that with favorable economic conditions and the likelihood of reduced lending rates, housing sales across major cities could experience a notable uptick. This environment presents a unique opportunity for buyers to invest in real estate, as prices may continue to rise in alignment with demand.
Conclusion: A Bright Future for India’s Real Estate
The ongoing growth in housing prices, combined with declining unsold inventory, paints a promising picture for India’s real estate sector. As consumer aspirations evolve and demand for larger, more luxurious homes increases, market activity is expected to thrive. The potential for interest rate reductions further enhances the attractiveness of the market for potential buyers. With a healthy mix of affordability and luxury catering to diverse consumer needs, the Indian housing landscape is set for an exciting year ahead.
