Bengaluru: Delhi NCR and Bengaluru saw the highest quarterly housing price rise in India at 16 per cent and 8 per cent respectively between April and June this year (Q2 2024), while the average across the top eight Indian cities was a 3 per cent quarter on quarter (QoQ) growth in the same time period.
Bringing this to light, a report released on Monday by the Confederation of Real Estate Developers' Associations of India (CREDAI), professional services and investment management company Colliers, and non-brokerage real estate research company Liases Foras, added that Bengaluru’s residential price for Q2 2024 has reached an average of Rs 11,161 per square foot (sf), up from an average price of Rs 8,688 per sf in Q2 2023. On a quarterly basis, Bengaluru’s price rose from Rs 10,377 per sf in Q1 2024.
Within Bengaluru, the inner east micro market saw the highest quarterly rise at 25 per cent followed by the periphery and outer east micro market at 10 per cent. Led by heightened demand in the luxury segment, inner east and periphery and outer west micro markets also witnessed a significant surge in average housing prices for ready units.
The report, however, found that the quarterly price movements at India level have been almost similar at about 3 per cent for the last four quarters. This stability in price growth is reflective of steady underlying demand over the last few quarters.
Average housing prices surged 12 per cent year-on-year (YoY). Seven out of eight cities under review witnessed annual price appreciation, with Delhi NCR witnessing the highest price rise at 30 per cent YoY closely followed by Bengaluru at 28 per cent YoY.
“Sales across India's cities have maintained growth despite the price rise. The current quarter showed a remarkable 33 per cent increase in new launches in the affordable segment,” said Pankaj Kapoor, Managing Director, Liases Foras.
“Within the residential market, demand growth has been the strongest in luxury and ultra-luxury segments including second and vacation homes which is evident with price growth in select micro-markets of Delhi NCR and Bengaluru. Average housing prices for spacious dwelling units, particularly 3-4 BHK configurations in these cities have increased up-to 30% on an annual basis,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
While unsold inventory remained stable on an annual basis at a pan India level, it dropped by up to 5 per cent on a quarterly basis except in Mumbai Metropolitan Region (MMR). As of Q2 2024, there was an availability of over 10 lakh housing units across the primary market of eight major cities, with MMR alone having about 40 per cent share in unsold inventory levels.
Despite yearly increase in the 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.