Led by sturdy demand and positive market sentiments, average housing prices in top eight cities in India continued to increase steadily, witnessing a 11 per cent growth (on-year) at Rs 11,000 per square feet during the July-September period this year, according to a report on Monday.
All the eight major cities saw an annual increase in housing prices, with Delhi-NCR witnessing the highest rise at 32 per cent, followed by Bengaluru at 24 per cent during the third quarter this year, according to the report released by CREDAI, Colliers and Liases Foras, a real estate data analytics company.
Within Delhi-NCR, Dwarka Expressway and Golf Course Extension/Sohna Road witnessed a significant price appreciation of over 50 per cent YoY.
Notably, average housing prices have increased for the 15th consecutive quarter since 2021. With anticipation of healthy residential activity in the last quarter, 2024 is likely to end on a strong note, the report said.
“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,” said Boman Irani, President of CREDAI National.
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, unsold inventory stood at over 10 lakh housing units across the eight major cities, with Mumbai Metropolitan Region (MMR) accounting for a majority at about 40 per cent share.
“While the housing market is gradually stabilising, the outlook for the residential segment remains positive supported by strong underlying market fundamentals,” said Badal Yagnik, Chief Executive Officer, Colliers, India.
Developers are recalibrating their strategies, particularly in the price-sensitive segments, by offering compact size units.
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.
“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,” said Pankaj Kapoor, Managing Director, Liases Foras.
