Amidst a backdrop of positive economic indicators, housing demand has soared, propelling property prices upwards by approximately 20% across India’s top eight cities over the last two years, according to a joint report by Credai, Colliers, and Liases Foras.
The report encompasses Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune.
Bengaluru, Delhi NCR, and Kolkata have experienced the most significant spikes in average housing prices, registering an impressive 30% surge in 2023 compared to 2021 levels. This surge is driven by heightened demand, particularly in the mid and luxury housing segments.
In specific figures, Bengaluru saw a 21% year-on-year increase in 2023, followed by Delhi-NCR with a 9% rise and MMR with a 4% increase.
Despite a substantial influx of new supply, the unsold inventory notably decreased in 2021 and remained relatively stable until the end of 2023. Both 2022 and 2023 witnessed a surge in new property launches, particularly in the mid and luxury segments, across major cities.
Cities like Bengaluru, Hyderabad, Kolkata, MMR, and Pune experienced a 2-2.5 times increase in new supply over the past two years, reflecting robust market activity and enhanced developer-market confidence.
Boman Irani, President of CREDAI National, anticipates further momentum in housing demand and supply in 2024, not only in the top eight cities but also in Tier II and III regions.
According to Badal Yagnik, CEO of Colliers India, the real estate market saw a remarkable year in 2023, marked by significant growth in high-end and luxury segments, infrastructure-led development, and deeper price discovery across various markets.
Pankaj Kapoor, Managing Director of Liases Foras, asserts that the current real estate landscape is most productive when sales, supply, and prices experience balanced growth, emphasizing the importance of non-speculative price rises for a healthy market.
