Residential property prices across India’s top eight cities saw a significant 10% year-on-year (YoY) increase in the last quarter of 2024, marking the 16th consecutive quarter of price growth since 2021, according to a report published by CREDAI-Colliers-Liases Foras. The rise was driven by strong demand and positive market sentiment, with Delhi NCR leading at a staggering 31% YoY price increase, followed by Bengaluru at 23%.
While the affordable housing segment continues to dominate sales, demand for luxury and ultra-luxury properties is expected to grow in 2025, further pushing prices upward. The steady appreciation is fueled by evolving consumer preferences, with homebuyers increasingly seeking larger spaces and premium amenities.
According to Boman Irani, President of CREDAI National, the continued price surge reflects buyer confidence and a preference for upgraded living spaces. “Cost pressures in construction and land acquisition are also contributing to price trends. If interest rates decline, affordability will improve, driving even greater demand,” he added.
India’s unsold housing inventory shrank for the fourth consecutive quarter, dropping by 5% annually in Q4 2024. For the first time in two years, the total number of unsold units fell below 10 lakh. However, the Mumbai Metropolitan Region (MMR) still accounted for nearly 40% of the total unsold stock. Pune recorded the sharpest decline at 14% YoY, followed closely by Hyderabad at 13%.
According to Pankaj Kapoor, Managing Director of Liases Foras, sales dipped slightly in the last quarter due to reduced new launches. However, he expects growth in affordable and mid-segment housing, shifting market dynamics that have been skewed toward luxury housing for the past four years.
Delhi NCR recorded the highest price appreciation among India’s top cities, with rates soaring by 31% in Q4 2024. Bengaluru, Ahmedabad, and Pune also witnessed notable price gains, propelled by infrastructure developments. Micro-markets like Outer West Bengaluru and Pune’s Baner and Nagar Road experienced up to 15% YoY price growth, particularly in ready-to-move-in properties.
The luxury and ultra-luxury segments saw particularly strong demand throughout 2024, driving up the prices of larger homes. In cities like Bengaluru, Delhi NCR, and Pune, the cost of 3-4BHK apartments surged by up to 34% YoY.
According to Vimal Nadar, Senior Director & Head of Research at Colliers India, evolving lifestyles, the rise of high-net-worth individuals, and the perception of luxury properties as status symbols are fueling sales in premium housing. “Luxury real estate remains an attractive investment, and this momentum is likely to persist in the coming quarters,” he noted.
With potential interest rate cuts and continued demand across all housing segments, experts predict that residential prices will maintain a similar growth trajectory in 2025.
