Although the Reserve Bank of India (RBI) has not reduced the repo rate, leading to high home loan rates, the demand and prices for properties continue to rise consistently. In the first quarter, significant increases in property prices have been observed from Delhi to Chennai. Notably, the highest appreciation has been recorded in the Delhi-NCR region. Let’s take a closer look at how real estate prices have changed in major cities across the country.
Average Price Increase of 12%
During the April-June quarter, the average housing prices in eight major cities across the country saw an annual increase of 12%. Notably, in the Delhi-NCR area, home prices experienced the highest surge, escalating by 30%. This finding was highlighted in the quarterly report by the real estate regulatory body CREDAI, property advisory firm Colliers, and data analytics company Liases Foras, which monitors home prices. By the end of the June quarter, the annual average housing prices in these eight major cities had increased by 12%.
Delhi-NCR Sees Maximum Increase
Interestingly, out of the eight cities analyzed, seven recorded a year-on-year price increase, with the highest 30% rise reported in the Delhi-NCR region. CREDAI President Boman Irani stated that there has been a notable acceleration in the real estate sector over recent quarters, supported by increased transaction volumes and prevailing positive sentiments towards housing in these top eight cities. This has directly impacted housing prices, reflecting not only underlying demand but also a significant shift towards real estate as a preferred asset class.
Price Increases by City
| City | Price (April-June 2024) | Price Change % |
|---|---|---|
| Ahemdabad | ₹7,335 per sq ft | 13% |
| Bengaluru | ₹11,161 per sq ft | 28% |
| Chennai | ₹7,690 per sq ft | No Change |
| Delhi-NCR | ₹11,279 per sq ft | 30% |
| Hyderabad | ₹11,290 per sq ft | 7% |
| Kolkata | ₹7,745 per sq ft | 6% |
| Mumbai Metropolitan Region | ₹20,275 per sq ft | 6% |
| Pune | ₹9,656 per sq ft | 13% |
Consistent Demand Growth
According to Pankaj Kapoor, Managing Director of Liases Foras, despite the increase in prices, sales across Indian cities continue to rise. Colliers India CEO Badal Yagnik mentioned that during recent quarters, the demand for homes has remained strong. Furthermore, steady interest rates and recent positive budgetary announcements have bolstered the country’s housing market. They anticipate that this year will be favorable for the housing sector.
