Housing Prices Surge 10% in Q1 2024: Bengaluru Leads with 19% Increase

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    A recent report by CREDAI and Liases Foras reveals that average housing prices in India rose by 10% in the first quarter of 2024 compared to the previous year. This increase was observed across eight major cities, with Bengaluru, Delhi NCR, Ahmedabad, and Pune showing double-digit growth.

    City-Wise Housing Price Increase

    1. Bengaluru: 19% rise, reaching Rs 10,377 per square foot.
    2. Delhi NCR: 16% rise, reaching Rs 9,757 per square foot.
    3. Pune: 13% rise.
    4. Chennai: 4% rise.

    Key Micro-Market Changes

    • Bengaluru: The Periphery and Outer East areas saw a 32% YoY increase.
    • Delhi NCR: Dwarka Expressway saw a 23% increase but may see a trend reversal due to new launches.

    Quarter-on-Quarter Appreciation

    Compared to Q4 2023, housing prices increased by 2-7% across these cities.

    CREDAI Insights

    Boman Irani, President of CREDAI National, attributes the price surge to strong demand, especially in premium and luxury housing. He noted that new infrastructure projects are significantly impacting the housing market dynamics.

    Housing Inventory

    Despite rising prices, unsold inventory increased by 3% YoY, with approximately 1 million unsold units by the end of Q1 2024. Key insights include:

    • Pune: 10% drop in unsold inventory, with Chinchwad accounting for 42% of unsold units.
    • MMR: 40% of total unsold units.
    • Hyderabad and Bengaluru: Slight quarterly dip in unsold inventory.
    • Chennai: Third consecutive quarter of declining unsold inventory.

    Market Outlook

    Badal Yagnik, CEO of Colliers India, suggests that potential reductions in benchmark lending rates could improve affordability, particularly for EMI-dependent buyers. Pankaj Kapoor, MD of Liases Foras, forecasts a further 10-15% rise in housing prices due to luxury demand, new infrastructure projects, and strategic launches.

    The real estate sector is expected to maintain strong demand driven by affordability and moderate inflation and interest rates.

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