Home prices jump 20% in two years; Delhi-NCR leads
Average home prices in 6 of the top 8 cities surged steadily between 2021 and 2023.
- Feb 28, 2024,
- Updated Feb 28, 2024 8:02 PM IST
Average home prices across India’s top markets have surged nearly 20% in the last two years. Renewed demand for homes post-pandemic and a steady rise in input costs have resulted in this latest round of price escalations in the country’s residential real estate market.
As per the latest data from Colliers-Liases Foras, the average per-square-foot price of homes in major cities like Delhi-NCR, Bengaluru, and Kolkata have jumped by over 30% between 2021 and 2023. The national capital region of Delhi (Delhi-NCR) reported the steepest rise in home prices. Average per sq.ft. price of homes jumped 32% to Rs 9,170 in 2023, compared to Rs 6,958 in 2021.
Bengaluru - traditionally the third largest market for residential homes in India - witnessed 31% rise in average prices - from Rs 7,609 per sq.ft. to Rs 9,976 per sq.ft, while Kolkata registered a 30% rise in average prices to Rs 7,912 per sq.ft. in 2023 - up from Rs 6,081 per sq.ft.
Among the other top markets, Pune recorded 24% rise during the two years, while in Hyderabad average price of homes per sq.ft. rose 26% to Rs 11,083. Ahmedabad, one of the cheapest markets to purchase a home saw 18% appraisal in average price per sq.ft.
In the Mumbai Metropolitan Region (MMR) - the largest market for residential homes in India - prices remained stable during the period. In 2023, average price in MMR stood at Rs 20,047 per sq.ft. - only 2% higher than Rs 19,657 per sq.ft. in 2021.
The year-on-year increase in housing prices is a combination of a number of factors – characterized by strong, robust demand from homebuyers – especially for mid and premium segments, along with the existence of a conducive buying eco-system coupled with healthy macro-economic factors, and the rise in prices of construction materials. The ongoing momentum also encouraged numerous developers that has led to the increase in housing supply across major cities in India. We expect both – housing demand and supply – to thrust forward in 2024 not only in top 8 cities but in Tier II, III regions as well,” says Boman Irani, President of CREDAI National.
According to Badal Yagnik, Chief Executive Officer, Colliers India, in 2023 the markets outperformed in several areas including an uptick in high-end & luxury segments, scaling new peak in sales volume, infrastructure led development, resulting in deeper price discovery across most of the markets. “Looking ahead to 2024, the market is well poised to maintain its current trajectory, with the mid and luxury segments expected to thrive further, offering lucrative opportunities for investors and homebuyers alike,” he says.
Average home prices across India’s top markets have surged nearly 20% in the last two years. Renewed demand for homes post-pandemic and a steady rise in input costs have resulted in this latest round of price escalations in the country’s residential real estate market.
As per the latest data from Colliers-Liases Foras, the average per-square-foot price of homes in major cities like Delhi-NCR, Bengaluru, and Kolkata have jumped by over 30% between 2021 and 2023. The national capital region of Delhi (Delhi-NCR) reported the steepest rise in home prices. Average per sq.ft. price of homes jumped 32% to Rs 9,170 in 2023, compared to Rs 6,958 in 2021.
Bengaluru - traditionally the third largest market for residential homes in India - witnessed 31% rise in average prices - from Rs 7,609 per sq.ft. to Rs 9,976 per sq.ft, while Kolkata registered a 30% rise in average prices to Rs 7,912 per sq.ft. in 2023 - up from Rs 6,081 per sq.ft.
Among the other top markets, Pune recorded 24% rise during the two years, while in Hyderabad average price of homes per sq.ft. rose 26% to Rs 11,083. Ahmedabad, one of the cheapest markets to purchase a home saw 18% appraisal in average price per sq.ft.
In the Mumbai Metropolitan Region (MMR) - the largest market for residential homes in India - prices remained stable during the period. In 2023, average price in MMR stood at Rs 20,047 per sq.ft. - only 2% higher than Rs 19,657 per sq.ft. in 2021.
The year-on-year increase in housing prices is a combination of a number of factors – characterized by strong, robust demand from homebuyers – especially for mid and premium segments, along with the existence of a conducive buying eco-system coupled with healthy macro-economic factors, and the rise in prices of construction materials. The ongoing momentum also encouraged numerous developers that has led to the increase in housing supply across major cities in India. We expect both – housing demand and supply – to thrust forward in 2024 not only in top 8 cities but in Tier II, III regions as well,” says Boman Irani, President of CREDAI National.
According to Badal Yagnik, Chief Executive Officer, Colliers India, in 2023 the markets outperformed in several areas including an uptick in high-end & luxury segments, scaling new peak in sales volume, infrastructure led development, resulting in deeper price discovery across most of the markets. “Looking ahead to 2024, the market is well poised to maintain its current trajectory, with the mid and luxury segments expected to thrive further, offering lucrative opportunities for investors and homebuyers alike,” he says.