India’s average housing prices grow 12% in April-June quarter; festive season to fuel housing market: Colliers CEO

Housing market prices, on average, have grown 12 per cent in the April to June quarter of the calendar year 2024, adding buoyancy to the growth of the residential real estate industry in India, said Badal Yagnik, the Chief Executive Officer of Colliers India, in a press release on Monday, August 26.

“Notably, average housing prices have witnessed a consistent double-digit annual growth rate (12% in Q2 2024,) adding buoyancy to the sustained growth story in residential real estate,” said Badal Yagnik.

The executive said the country's housing market has remained healthy over the last few quarters, and stable interest rates and the positive Union Budget announcement in July 2024 have provided tailwinds for the industry.

Delhi NCR has seen the highest year-on-year price rise based on carpet area; the city saw a 30 per cent rise in residential housing prices in the second quarter of the calendar year 2024 compared to the same quarter in the previous year, according to the release's data.

The statement said Bengaluru followed Delhi NCR's cue with a 28 per cent hike in residential housing prices based on carper area in the second quarter of the calendar year 2024, compared to the same period the previous year.

According to the press release, residential housing prices in Ahmedabad were up 13 per cent, Pune up 13 per cent, Hyderabad at 7 per cent, and Mumbai Metropolitan Region (MMR) at 6 per cent compared to the previous year's second quarter.

As residential real estate prices have increased, pan-India sales have also increased despite the high property rates.

“Sales across India's cities have maintained growth despite the price rise. The current quarter also showed a remarkable 33% increase in new launches in the affordable segment. NCR's growth in sales and new launches augurs that the market will stay on a growth trajectory,” said Pankaj Kapoor, managing director at Liases Foras (a non-brokerage real estate research company) in the press release.

The upcoming festive season will further fuel the housing market's strength with heightened sales and new launches. Yagnik said Colliers India expects a strong finish for the housing market at the end of 2024.

According to company data, Colliers is a professional services and investment management company with operations in 68 countries and nearly 19,000 employees who provide expert real estate and investment advice to clients.