Winning Bizness Desk

Mumbai.Driven by high demand and positive market sentiment, the average housing prices in India’s top eight real estate markets saw a 10% annual increase in the fourth quarter of 2024. This marks the 16th consecutive quarter of price growth since 2021.

According to a CREDAI-Colliers-Liases Foras report, housing prices increased in all eight major cities. Delhi-NCR recorded the highest annual price growth at 31%, followed by Bengaluru with a 23% rise in Q4 2024.

Luxury and Ultra-Luxury Segments to See Higher Demand

The affordable housing segment continues to dominate residential sales.

However, the demand for luxury and ultra-luxury homes is expected to rise in 2025.

Overall, unsold housing inventory declined for the fourth consecutive quarter, witnessing a 5% year-on-year drop in Q4 2024, driven by healthy demand.

Unsold Inventory Drops Below 1 Million Units for the First Time in Two Years

• By December 2024, the total unsold housing inventory in India fell below 1 million units, a first in the last two years.
• The Mumbai Metropolitan Region (MMR) accounted for 40% of this inventory, making it the largest contributor.

Cities with the Highest Decline in Unsold Inventory

Pune saw the sharpest annual drop of 14%, followed by Hyderabad with a 13% decline in unsold housing units.

Rising Prices Reflect Strong Consumer Confidence

• The consistent rise in home prices highlights strong buyer confidence in the real estate market.
• Many buyers are prioritizing larger homes and lifestyle upgrades, contributing to the surge in demand.

Favorable Market Conditions for Homebuyers

This positive trend is expected to continue throughout the year, making real estate investment highly attractive for homebuyers.

Additionally, the recent repo rate cut and government initiatives to fund stressed residential projects will further support the affordable housing segment.