Credai co-released a report in which eight cities in India saw a 10 per cent average appreciation in Q1 2024 with Bengaluru leading the list. Check price rise in other cities.
Private Real Estate developers body Confederation of Real Estate Developers' Associations of India (CREDAI ) co-released a report stating average housing prices surged by 10 per cent during Q1 2024 YOY. Investment management company CREDAI and real estate research company Liases Fora co-conducted this survey in which eight cities in India saw housing price appreciation with Bengaluru, Delhi NCR, Ahmedabad, and Pune registering double-digit growth.
Bengaluru and Delhi NCR witnessed a whopping 19 per cent and 16 per cent YoY appreciation in housing prices touching Rs 10,377 and Rs 9,757 for one square foot. Pune saw a 13 per cent appreciation in housing prices. Within Bengaluru, the Periphery and Outer East micro market saw the steepest rise at 32 per cent YoY increase. Meanwhile, Chennai saw zero quarter-on-quarter change and only a 4 per cent year-on-year rise. In Delhi NCR, Dwarka Expressway registered a 23 per cent increase in prices but the report says the trend in Dwaraka is likely to reverse because many new launches are in the pipeline.
Compared to Q4 2024, housing prices across these cities saw a 2 to 7 per cent appreciation. Boman Irani, President of CREDAI National, “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." He said the emergence of various micro-markets- the primary beneficiaries of many infrastructural projects- altered the demand-supply dynamics in residential real estate, which he does not expect to change in FY 24-25 as well.
Notably, the price appreciation is reported by CREDAI despite unsold inventory rising 3 per cent YoY. Pune showed the highest drop- a 10 per cent YoY drop in unsold inventory, closely followed by Delhi NCR and Ahmedabad, each registering an 8 per cent drop. In Pune, Chinchwad accounted for 42 per cent of the unsold units, the majority of them were concentrated in the affordable and mid-segment.
On average, as of the end of Q1 2024, unsold inventory across the eight cities stood close to 10 lakh units, with MMR constituting 40 per cent share of the total unsold units.
Although Hyderabad and Bengaluru witnessed increases in unsold inventory YOY, both cities saw a slight quarterly dip. Unsold inventory dropped for the third consecutive quarter in Chennai. " With prospects of a reduction in benchmark lending rates in the ongoing fiscal year, affordability can improve in the near term, especially for the EMI-dependent home buyers”, Badal Yagnik, Chief Executive Officer, Colliers, India stated
“ Factors like luxury demand, upcoming infrastructure projects, and strategic launches drive these increases. With moderate inflation and interest rates, the real estate sector is expected to maintain demand due to affordability. The prices could increase by 10 to 15 per cent”, Pankaj Kapoor, Managing Director, Liases Foras forecasted.