New Delhi, Aug 26 (FN Bureau) Driven by strong demand from homebuyers, average housing prices across major cities in the country surged 12% year-on-year (YoY) in April-June quarter of the ongoing calendar year 2024 while inventory of unsold units dipped, according to an industry report released here on Monday. The CREDAI-Colliers-Liases Foras report said that positive homebuyer sentiment and steady demand have kept the momentum strong in the residential market across major Indian cities. As per the report, average housing prices across the top eight Indian cities witnessed a 3% QoQ (Quarter-on-Quarter) growth in the June quarter of 2024.
The report said that 7 out of 8 cities under review witnessed annual price appreciation, with Delhi NCR witnessing the highest price rise at 30% YoY closely followed by Bengaluru. “While unsold inventory remained stable on an annual basis at a pan India level, it dropped marginally on a quarterly basis amid healthy sales in housing units. At 5%, Kolkata saw the highest sequential decline in unsold inventory levels followed by Pune with 3% dip,” it said. The report said that as of Q2 (April-June quarter) 2024, there was an availability of over 10 lakh housing units across the primary market of eight major cities, with Mumbai Metropolitan Region (MMR) alone having about 40% share in unsold inventory levels. “Despite yearly increase in number of unsold units in Hyderabad and Bengaluru, both cities saw a modest dip on a sequential basis. As the festive season approaches, developers are likely to closely monitor new launches and overall housing stock in prominent residential catchment areas,” the report said.
Boman Irani, President of CREDAI National stated, “Indian real estate has been somewhat experiencing a bull run in the past few quarters, substantiated by the volume of transactions across top 8 cities as well as the prevalent positive sentiments towards housing. There has been a direct impact on housing prices – signifying not just the underlying demand but the definitive shift towards real estate as a preferred asset class. With the upcoming festive season – coupled with the government’s focus on infrastructure and a relatively stable lending eco-system – we project this momentum to further have an impact on both prices and unsold inventory levels, as the industry’s demand-supply dynamics change.” The report covered residential markets in Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, MMR and Pune.