 "At 30%, Delhi-NCR sees highest increase in housing prices in 2024")
Housing prices in Delhi-NCR have appreciated the most among seven major Indian cities with rates rising by an average 30 per cent during 2024 due to a steep hike in input cost, according to real estate consultancy firm Anarock.
Anarock noted that Delhi-NCR recorded the "highest yearly jump of 30 per cent in average residential price --"from Rs 5,800 per sq ft in 2023 to nearly Rs 7,550 per sq ft in 2024." The sharp increase in housing prices in Delhi-NCR was despite higher supply and a marginal fall in sales during the 2024 calendar year.
The 30% surge was driven by a mix of factors, including the region’s robust demand for housing, particularly in premium and luxury segments, along with the rising cost of materials and construction.
The demand for quality homes in Delhi-NCR continues to rise, thanks to the region's rapid urbanization, infrastructure development, and the influx of high-net-worth individuals (HNWI) looking for top-tier residential properties.
The top seven cities are Delhi NCR, Mumbai Metropolitan Region, Bangalore, Pune, Hyderabad, Chennai and Kolkata. According to ANAROCK Research, the average residential price in the top 7 cities jumped by 21% in the fourth quarter of 2024 compared to the fourth quarter of 2023, from Rs 7,080 per sq. ft. to Rs 8,590 per sq. ft. This increase reflects the ongoing recovery and expansion of the real estate sector.
The Mumbai Metropolitan Region (MMR) also saw significant price growth in 2024, with a 21% increase in residential prices. The average price per square foot went up from Rs 13,700 in Q4 2023 to Rs 16,600 in Q4 2024.
Bengaluru, another key city, saw a 28% price hike, with prices jumping from Rs 6,550 per sq. ft. in Q4 2023 to Rs 8,380 per sq. ft. in Q4 2024. The city's thriving tech industry and the influx of tech professionals and entrepreneurs have been key drivers behind the surge in demand for upscale, modern homes.
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In Hyderabad, prices also surged by 27%, from Rs 5,750 per sq. ft. in 2023 to Rs 7,300 per sq. ft. in 2024. Hyderabad’s real estate market has been buoyed by the city’s rapid growth as an IT and business services hub, with both residential and commercial real estate sectors benefiting from increased demand.
Cities like Pune and Chennai experienced more moderate price increases, with Pune seeing a 14% rise, from Rs 6,750 per sq. ft. to Rs 7,720, and Chennai registering a 14% increase as well, from Rs 5,950 to Rs 6,790. These cities continue to attract a mix of buyers looking for both affordable and premium properties, especially as they benefit from economic growth and urban expansion.
Meanwhile, Kolkata saw a more modest price increase of 13%, from Rs 5,150 in Q4 2023 to Rs 5,820 in Q4 2024.
Other key highlights of the report:
- Approx. 4,59,650 units worth about Rs 5.68 lakh Cr were sold in 2024 in the top 7 cities, against 4,76,530 units worth about Rs 4.88 lakh Cr in 2023
- MMR records highest sales of approx. 1,55,335 units in 2024, followed by Pune with approx. 81,090 units; MMR (1%) & Bengaluru (2%) only cities to see yearly rise in 2024
- Approx. 4,12,520 new units launched in 2024 against 4,45,770 units in 2023 - 7% yo-y decline
- MMR & Bengaluru saw maximum new launches, together accounting for approx.
- 50% of total new supply in 2024
- Chennai, Bengaluru & NCR only cities to see new launch supply growth
- 30% of total new supply was in luxury & ultra-luxury segments (>Rs 1.5 Cr price bracket), 28% in Rs 40-80 lakh bracket, 26% in Rs 80 lakh – Rs 1.5 Cr bracket; affordable housing share lowest at 16%
- NCR sees significant increase (44%) in new supply - approx. 53,000 units in 2024 against 36,735 units in 2023
- Available inventory decreased by 8% in 2024 over 2023 despite relatively generous new supply during the year
- Residential prices collectively rose 21% annually in top 7 cities; Delhi-NCR saw highest 30% annual rise