Housing prices in the top eight markets in India increased by 11% year-on-year (y-o-y) to Rs 11,000 per square foot on an average during the third quarter of 2024. This marks the 15th consecutive quarter of growth since 2021, driven by strong demand and positive market sentiment. All eight major cities experienced an annual rise in housing prices, with Delhi NCR recording the highest increase at 32% y-o-y, followed by Bengaluru, which saw a 24% rise during the same quarter. After two years of record-high sales, demand across these top cities is stabilizing. However, with expectations of robust residential activity in the final quarter, 2024 is likely to conclude on a strong note,mentioned the report. . Boman Irani, President of CREDAI National stated, “The ongoing rise in housing prices is another validation of positive homebuyer sentiments and the highly conducive nature of the real estate market. We are seeing more and more aspirational homebuyers come to the fore – resulting in bigger homes that are also being reflected in the rise in prices as homes continue to get more expansive, truly reflecting the current market dynamics and consumer preferences. We expect this robust momentum to continue going into the new year and are hopeful of rate cuts in the impending future.”The report mentioned the overall unsold inventory continued to witness a quarterly drop for the third consecutive quarter, led by healthy uptake in housing units. At the end of September 2024, unsold inventory stood at over 10 lakh housing units across the eight major cities, with MMR accounting for a majority at about 40% share. Notably, unsold units in Hyderabad saw a modest dip on a sequential basis despite a yearly increase of about 28%.”While the housing market is gradually stabilizing, the outlook for the residential segment remains positive supported by strong underlying market fundamentals. Developers are recalibrating their strategies, particularly in the price-sensitive segments, by offering compact size units. Although average housing prices have continued to increase steadily, witnessing a 11% YoY growth during Q3 2024, the likely easing of monetary policy and anticipated repo rate cuts can potentially bring financial relief to homebuyers in the near term. Moreover, flexible payment plans and freebies to attract homebuyers will continue to aid in residential sales momentum.”, said Badal Yagnik, Chief Executive Officer, Colliers, India.The report highlighted that housing prices in the Delhi NCR region increased by 32% year-over-year, marking the highest annual rise among major cities. This surge was largely driven by the launch of select high-profile projects within the luxury and ultra-luxury segments. Notably, areas such as Dwarka Expressway and Golf Course Extension/Sohna Road experienced a remarkable price appreciation of over 50% year-over-year, contributing to a significant increase in average housing prices across the region. Interestingly, when compared to the early years of the pandemic in 2020, average housing prices in the area have grown by approximately 75%. This growth has been fueled by strong demand for luxury properties and a continued interest in larger and more spacious living units.“Sales and prices continue to grow, suggesting affordability and demand are intact. The luxury segment is still dominant, although we have been seeing a gradual reduction in new launches. While MMR, Pune, and Hyderabad are reaching a plateau in sales and supply, NCR, Chennai, and Tier 2 cities have a deficient supply level; they may see a surge in new launches”, said Pankaj Kapoor, Managing Director, Liases Foras.According to the report, unsold inventory levels, while still high, have continued to decrease for the third consecutive quarter. Pune experienced the most significant annual decline at 13%. Notably, this marks the fifth consecutive decrease in inventory levels for the city. Chennai and Kolkata also saw substantial annual declines, with decreases between 7% and 9%. Additionally, seven out of eight cities experienced a drop in unsold inventory levels on a quarterly basis.“With existing high unsold inventory levels to the tune of 10 lakh units across the eight major cities, developers are being cautious with new launches. They are realigning their strategies by assessing and identifying the appropriate target audience in high demand pockets. Although new launches have moderated in the affordable housing segment, developers have stepped up their offerings in luxury and ultra-luxury segments. Average housing prices for spacious dwelling units, particularly 3-4BHK configurations in cities like Bengaluru and Delhi NCR increased by up-to 26% YoY during Q3 2024.,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.
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