Housing prices surge by 14% in Delhi-NCR during April-June; Mumbai region witnesses 3% decline in rates: Report

Housing price trends in the Delhi-NCR and Mumbai Metropolitan Region (MMR) have exhibited contrasting patterns during the April-June quarter, as highlighted in a collaborative report by CREDAI, Colliers India, and Liases Foras. The report underscores that housing prices across eight major cities displayed an average year-on-year increase of 7 percent in the second quarter of the current calendar year, driven by robust demand.

The data reveals that Kolkata witnessed the highest surge in average residential prices, recording a noteworthy 15% year-on-year growth. Following closely were Delhi NCR and Hyderabad with respective increases of 14% and 13%.

However, the Mumbai Metropolitan Region stood as the sole city among the eight to experience a dip in average prices, registering a decline of 3 percent during the April-June quarter. This decrease, down to Rs 19,111 per square foot, was attributed to a substantial influx of new supply and a corresponding rise in unsold inventory.

Pankaj Kapoor, Managing Director of Liases Foras, emphasized that the housing market has demonstrated a balanced and prudent trajectory, primarily due to a substantial number of new launches in the past year. This increased supply has effectively moderated price escalations, making it an appealing environment for both end-users and long-term investors.

Boman Irani, the National President of CREDAI, highlighted the ongoing robustness in sales volume nationwide, reflecting positive sentiments among homebuyers and indicating the favorable nature of the market. Despite price increases, he anticipates this trend to persist throughout the fiscal year. He attributes this resilience to the relatively stable repo rate and lending ecosystem, further bolstered by the forthcoming festive season.

Peush Jain, Managing Director of Occupier Services at Colliers India, pointed out the consistent upward trajectory in housing prices across the country over the past ten quarters. With the repo rate having stabilized since February 2023 at 6.5 percent, prospective homebuyers remain optimistic due to clearer visibility regarding monthly EMIs. Jain acknowledged the challenges faced by developers with rising construction costs but noted that housing demand remains steadfast.

Mohit Goel, Managing Director of Omaxe, expressed that the upward movement in housing prices was long overdue after nearly a decade of stagnant rates. He indicated that aside from a few pockets, the increase in price has been moderate, thus keeping prices within an affordable range.

The report also details specific price trends in various cities. Housing prices in Ahmedabad witnessed a 10 percent year-on-year growth, reaching Rs 6,507 per square foot during the April-June period. Bengaluru observed a similar 10% increase, with prices reaching Rs 8,688 per square foot. Chennai experienced a 6% price hike, reaching Rs 7,653 per square foot. In Delhi-NCR, rates surged by 14% to Rs 8,652 per square foot, while Hyderabad saw a 13% increase to Rs 10,530 per square foot. Kolkata's residential property prices rose by 15% to Rs 7,315 per square foot, and Pune exhibited an 11% year-on-year appreciation, reaching Rs 8,540 per square foot.