India's housing market continued its growth in Q2 2024, with average home prices in the top eight cities rising by 3% quarter-over-quarter (QoQ), according to a report by CREDAI, Liases Foras, and Colliers. This consistent 3% quarterly increase over the past year highlights sustained demand. Annually, average prices rose by 12%, with Delhi NCR leading at 30%.
Delhi NCR Tops Price Growth
Delhi NCR recorded the highest quarterly price growth at 16% among the eight cities. Within the region, Dwarka Expressway and Greater Noida saw notable price increases of 35% and 24% QoQ, driven by a surge in luxury housing launches. The demand for larger units in the luxury and ultra-luxury categories further fueled up to 12% QoQ growth in prices for 3-4BHK configurations.
Bengaluru Also Shows Significant Growth
Bengaluru also showed strong growth, with average housing prices surpassing Rs 11,000 per square foot, marking an 8% QoQ rise. The Inner East micro-market experienced a 25% increase, followed by Periphery Outer East at 10%.
Vimal Nadar, Senior Director and Head of Research at Colliers India, noted, "Demand growth has been strongest in the luxury and ultra-luxury segments, including second and vacation homes. Prices for spacious units, especially 3-4BHK configurations, have risen up to 30% annually. The government's recent tax policy rollback is expected to further boost investor sentiment."
Decline in Unsold Inventory in Most Cities
The report highlighted a decline in unsold inventory across seven of the eight major cities, with MMR accounting for about 40% of the total. Excluding MMR, other cities saw a decline of up to 5% in unsold inventory levels QoQ. Pune saw the highest annual drop at 13%, while Kolkata recorded the largest sequential decline at 5%.
Overall, the steady growth in prices, particularly in the luxury segment, suggests a positive outlook for the housing market in the coming quarters.
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