According to a report conducted by joint report of Colliers India and data analytic firm Liases Foras,Average housing prices appreciated 10% annually across top eight cities during January-March this year with Bengaluru witnessing maximum increase of 19%.
According to the data, average housing prices in Bengaluru rose 19% annually to Rs. 10,377 per square feet in January-March 2024, from Rs. 8,748 per square feet in the same period last year.
Managing Director, of Liases Foras, Pankaj Kapoor said, "In the top 8 cities of India, property prices have seen a notable 10% year-on-year increase, alongside strong sales, and new supply introductions." Bengaluru topped the list with a 19 per cent spike in housing prices, followed by Delhi NCR, Hyderabad, and Pune.
Kapoor also added, "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. Kapoor also added that, the prices of real estate would increase by 10-15% bridging the gap between affordability and inflation-adjusted prices.
President of CREDAI National, Boman Irani mentioned that, the emerging trend of upsurging in housing sales is the direct consequences of the robust housing demand, especially in premium and luxury housing, by homebuyers across the country.
Irani further added, "These are directly linked to not just a stable lending ecosystem but also the emergence of various micro-markets that have been the primary beneficiaries of significant infrastructure projects - which has altered the demand-supply dynamics in residential real estate and we do not foresee this momentum to slow down in FY 24/25 as well."
According to the data provided, the housing prices in Delhi-NCR experienced a 16% surge, reaching Rs. 9,757 per square feet. In Ahmedabad and Pune, the rates witnessed a 13% annual increase, amounting to Rs. 7,176 per square feet and Rs. 9,448 per square feet, respectively. In Hyderabad, the housing prices grew by 9%, reaching Rs. 11,323 per square feet, while in Chennai, the rates went up by 4%, reaching Rs. 7,710 per square feet. The Mumbai Metropolitan Region (MMR) witnessed a 6% appreciation in prices, with the cost per square feet reaching Rs. 20,361.
The housing prices in Kolkata increased 7% to Rs. 7,727 per square feet during January-March period of 2024, from Rs. 7,211 per square feet in the year-ago period.
The Chief Executive Officer, Colliers India, Badal Yagnik said, "Residential real estate in India continued to benefit from positive sentiments. This upward trend reflects the resilience and dynamism of the residential sector, buoyed by factors such as stable repo rates and infrastructure upgrades across most of the major Indian cities."
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