Average Home Prices in India Goes Up 10%

Average Home Prices in India Goes Up 10%

The Indian real estate market is buzzing with a significant home price surge. According to recent reports, this upward trend can be seen across the top eight cities in the first quarter of 2024. The report by CREDAI, Colliers, and Liases Foras, states that the average home prices in these cities have increased by 10% compared to the same period last year. This dynamic shift could be attributed to many factors which include robust housing demand, significant infrastructure projects, and more. 

In this blog, we will focus on the details of this trend and explore the regional variations. We will also discuss how this upward trend could impact prospective homebuyers and investors and how it would affect homeownership in India

Quick Glance At The YoY Housing Prices

India’s average house price increased 10% YoY in Q1 2024 to INR 10,485 per square foot. This was driven by the persistence of healthy demand, which was supported by stable repo rates and restrained inflation. The housing prices of the top eight cities increased annually, with Bengaluru experiencing the largest increase at 19% YoY and Delhi-NCR following at 16% YoY.

YoY Housing Prices

Pan India Housing Marketing Trends


Due to a rise in residential demand, particularly in the mid-segment, housing prices increased 13% YoY. Future infrastructure projects like Ahmedabad Metro Phase 2 are expected to increase residential activity in the Gandhinagar suburb of the city. 

The two micro markets with the biggest annual price increases were City Central West (26%), and Eastern Suburbs (12%). Furthermore, the amount of unsold inventory went down an annual 8%. The majority of unsold apartments, which was 64% as of Q1 2024, remained in the affordable and mid-segment. 


Interestingly, Bengaluru, with a 19% yearly price increase, had the biggest increase among the top eight Indian cities. The micro markets on the Periphery and Outer East showed the biggest growth, at 32% YoY. Moreover, the demand for 1BHK apartments remained strong, and prices increased by 35% YoY, with 3 BHK configurations following suit. 

Large apartments were in high demand in areas close to important IT hubs like KR Puram and Whitefield. However, the mid and luxury-class properties comprised about 70% of the unsold inventory. The number of new product releases in the city increased significantly, particularly in the luxury sector, the bulk of which were in the Outer North and Periphery micro markets. 


The city’s housing prices increased by a moderate 4% year over year. North Ambattur saw the most significant increase, with a 14% annual price increase. The forthcoming Metro Phase 2 is anticipated to increase residential activity in the Central Chennai, Ambattur, Tambaram, and Poonamallee sectors even further.

The increasing demand for 4BHK units resulted in an annual price increase of 13%. Additionally, 36% of Chennai’s unsold inventory was located in the Chengalpattu (Coastal) micro market, primarily in the affordable and mid-segment. 


Amidst robust demand, the real estate market of Delhi-NCR witnessed a drop in the unsold inventory.  While Delhi-NCR showed a significant annual rise of 16% in housing prices, Dwarka Expressway exhibited an increase of 23% YoY.  According to experts, new project launches will come to life in the Dwarka Expressway housing market, resulting in further increases in property prices. 


With the rise in demand, the unsold inventory dropped 8% YoY further displaying a balanced demand and supply dynamics in the city. An important point to be noted is that this was the fifth consecutive quarter drop of Noida’s unsold inventory. The majority of the region’s unsold inventory, or about 54% of it, was in the micro market of Noida Extension and belonged to the mid-range and affordable price range.

Average Home Prices in India


The city’s housing prices increased 9% each year, with the Southwest micro market experiencing the biggest YoY increase at 15%. Central Hyderabad’s average prices somewhat decreased as a result of strong sales in reasonably priced developments that just obtained occupancy certifications. 

The Northwest micro market’s 1-2BHK apartments experienced the largest annual price increase, rising 6-7%, due to strong demand stemming from their close proximity to burgeoning IT-dominant areas. 


Although the cost of housing in Kolkata increased by 7% annually, prices fell slightly on a quarterly basis. This drop is attributed to significant sales and new launches in the affordable housing sector in Central and Southeast Kolkata. 

East Kolkata saw a 23% increase in prices, while Outer Kolkata continued to see the highest annual price growth at 26%. The affordable and mid-segment accounted for over 63% of the unsold units, the majority of which were located in East Kolkata.


In MMR, housing prices increased by an annual 6%, with micro markets like Island City seeing a notable spike at 16% YoY, followed by Panvel. With the commissioning of the Mumbai Trans Harbour Link, Navi Mumbai, too, had an annual rise of 10% (MTHL). There were notable project launches in the premium and ultra-luxury segments in Island City.

While 3–4 BHK flat prices increased 3-6% YoY, 1 BHK unit prices were down an annual 5%, suggesting that the demand for spacious homes is still strong. Most of the 97% of unsold homes were in the mid and affordable segment and were all under development. 


Pune’s housing market saw a 13% annual increase in prices due to noteworthy launches in the high-end luxury class. The two micro markets with the biggest YoY price increases were Camp and Baner, with a price hike in the range of 20-23% YoY. The highest price increases were observed in 2BHK and 3BHK units, at 10% YoY.

Chinchwad was accountable for 42% of the unsold units, with the majority falling into the affordable and mid-segment categories. Residential activity in Baner, Chinchwad, Shivaji Nagar, and Nagar Road is expected to increase due to impending commercial developments and infrastructure projects like Metro Line 3 and Pune Ring Road. 

According to real estate experts, housing prices will likely continue to rise due to anticipated reductions in lending rates later this year.

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