India’s real estate market has experienced a remarkable surge in Q4 2024, with housing prices across the top eight cities increasing by 10% year-on-year (YoY). According to the latest CREDAI, Colliers, and Liases Foras report, this growth is driven by strong demand in the luxury and ultra-luxury segments. Let’s dive into the city-wise housing price trends, with a special focus on Bengaluru, and analyze the factors fueling this rapid growth.
Bengaluru emerged as the second-fastest-growing real estate market, recording a 23% YoY price rise, second only to Delhi NCR. The demand for spacious 3-4 BHK apartments in Whitefield and Sarjapur has soared due to the booming IT sector and strong rental yields.
Delhi NCR recorded the sharpest increase of 31% YoY, with specific micro-markets experiencing even steeper rises:
Infrastructure expansion and steady demand contributed to Ahmedabad’s 15% price growth. The SG Highway corridor and South Ahmedabad are the new hotspots attracting buyers and investors alike.
Pune experienced a 9% rise in housing prices, with Baner, Hinjewadi, and Kharadi leading the charge. Additionally, Pune saw the highest decline in unsold inventory (14%), indicating strong market absorption.
West Hyderabad, Gachibowli, Kokapet, and Kondapur drove Hyderabad’s 7% YoY price increase. The city also recorded a 13% decline in unsold inventory, signaling healthy demand in the housing market.
Chennai’s real estate sector saw a 6% price appreciation, with OMR and Porur emerging as the most sought-after locations, largely driven by IT professionals and NRI buyers.
Mumbai Metropolitan Region (MMR) recorded the slowest growth of 5% due to affordability concerns and high supply levels. However, for the first time in three years, MMR’s unsold inventory declined, reflecting an improvement in market sentiment.
Kolkata reported the lowest price rise at 4%, with Rajarhat and New Town remaining the most in-demand areas, driven by affordable housing projects.
India’s unsold housing inventory declined for the fourth consecutive quarter, dropping 5% annually. Notably:
The luxury and ultra-luxury segments continue to be the primary growth drivers, particularly in Delhi NCR, Bengaluru, and Pune. Prices of 3-4BHK apartments surged up to 34% YoY in Q4 2024.
Boman Irani, President of CREDAI National, stated:
“The sustained growth in housing prices reflects strong homebuyer confidence, driven by demand for spacious living, premium amenities, and integrated lifestyle spaces.”
Pankaj Kapoor, MD of Liases Foras, commented:
“Sales saw a marginal decline due to moderated new launches in Q4 2024. However, we anticipate a rise in affordable and mid-segment housing supply in 2025, balancing the market’s current focus on luxury housing.”
With rising demand, declining unsold inventory, and increasing homebuyer confidence, India’s real estate market is set for another strong year in 2025. Bengaluru, in particular, remains a top destination for homebuyers and investors, thanks to its IT-driven economy, infrastructure expansion, and high rental yields.
Whether you are looking to invest in luxury housing or explore Bengaluru’s emerging hotspots, now is the perfect time to make a move.
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