Average housing prices up 10% in January-March across top 8 cities; maximum rise of 19% in Bengaluru: Report

Average housing prices appreciated 10 per cent annually across top eight cities during January-March this year with Bengaluru witnessing maximum increase of 19 per cent, according to a report.

Prices across these eight cities have risen in a range of 4 per cent to 19 per cent, realtors' body CREDAI, real estate consultant Colliers India and data analytic firm Liases Foras said in a joint report.

As per the data, average housing prices in Bengaluru rose 19 per cent 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.

"In the top 8 cities of India, property prices have seen a notable 10 per cent year-on-year increase, alongside strong sales, and new supply introductions," said Pankaj Kapoor, Managing Director, Liases Foras.

Bengaluru leads with a 19 per cent spike in housing prices, followed by significant escalations in Delhi NCR, Hyderabad, and Pune, he added. "Factors like luxury demand, upcoming infrastructure projects, and strategic launches drive these increases," Kapoor said.

With moderate inflation and interest rates, the real estate sector is expected to maintain demand due to affordability. "The prices could increase by 10-15 per cent, bridging the gap between affordability and inflation-adjusted prices," Kapoor said.

Boman Irani, President of CREDAI National, said, the surge in housing prices is a direct consequence of the robust housing demand, especially in premium and luxury housing, by homebuyers across the country.

"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," Irani said.

As per the data, housing prices in Delhi-NCR saw a 16 per cent increase to Rs 9,757 per square feet. In Ahmedabad and Pune, rates rose 13 per cent annually to Rs 7,176 per square feet and Rs 9,448 per square feet, respectively.

Housing prices in Hyderabad grew 9 per cent to Rs 11,323 per square feet, while rates in Chennai went up 4 per cent to Rs 7,710 per square feet. In Mumbai Metropolitan Region (MMR), the prices appreciated by 6 per cent to Rs 20,361 per square feet.

Housing prices in Kolkata increased 7 per cent 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.

Badal Yagnik, Chief Executive Officer, Colliers India, 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."

With prospects of reduction in benchmark lending rates in the ongoing fiscal year, he said affordability can improve in the near-term, especially for the EMI-dependent home buyers.