India’s Housing Market Surge: Q4 2024 Real Estate Trends

Mar 01, 2025
India’s Housing Market Surge: Q4 2024 Real Estate Trends

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 Sees a Massive 23% Growth, Driven by IT Expansion

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.

Key Factors Driving Bengaluru’s Housing Market Boom:

  1. IT Industry Growth: The city remains India’s top IT hub, attracting skilled professionals looking for premium housing.
  2. Demand for Larger Homes: Buyers prefer spacious apartments with modern amenities to accommodate hybrid work trends.
  3. Infrastructure Development: The Metro Phase 2 expansion and connectivity enhancements have increased demand in Sarjapur, Whitefield, and Outer Ring Road (ORR).
  4. High Rental Yields: With rental yields among the highest in India, investors are actively looking for income-generating properties.
  5. Thriving Startup Ecosystem: Bengaluru’s status as the startup capital of India continues to attract young professionals and entrepreneurs, driving residential demand.
  6. Luxury Housing Boom: There is a growing preference for premium gated communities offering world-class amenities, especially in areas like Indiranagar, Jayanagar, and Hebbal.
  7. Upcoming Infrastructure Projects: Projects such as Satellite Town Ring Road (STRR) and Peripheral Ring Road (PRR) are expected to further enhance connectivity and drive property appreciation.
  8. Strong NRI Investments: Bengaluru continues to be a top destination for NRI investments, with many preferring to buy properties in high-end localities for self-use or rental income.


Delhi NCR Leads with a 31% Surge

Delhi NCR recorded the sharpest increase of 31% YoY, with specific micro-markets experiencing even steeper rises:

  1. Dwarka Expressway: Prices surged 58%
  2. Greater Noida: A 52% increase due to infrastructure growth
  3. Gurugram & Noida: Strong luxury housing demand bolstered price appreciation


Ahmedabad’s Real Estate Prices Increase by 15%

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: 9% Growth & Fastest Decline in Unsold Inventory

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.


Hyderabad Reports a 7% Price Rise & 13% Drop in Unsold Inventory

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 Market Grows at a Moderate 6%

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.


MMR’s Slowest Growth at 5%, But Inventory Reduction is a Positive Sign

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’s 4% Growth – The Lowest Among Major Cities

Kolkata reported the lowest price rise at 4%, with Rajarhat and New Town remaining the most in-demand areas, driven by affordable housing projects.


Unsold Inventory Drops Nationwide

India’s unsold housing inventory declined for the fourth consecutive quarter, dropping 5% annually. Notably:

  1. Pune led the way with a 14% decline
  2. Hyderabad followed with a 13% drop
  3. MMR recorded its first inventory reduction in three years


Luxury Housing Demand to Drive Market Growth in 2025

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.

Expert Insights on Future Trends

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.”


Conclusion: India’s Real Estate Market Poised for Growth in 2025

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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