Property prices skyrocket in these cities in Q1 CY24

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The real estate of the country is in midst of a  rapid growth. According to the report of the Confederation of Real Estate Developers Association of India (CREDAI), the average prices of properties have increased by 10 percent annually in the first quarter of 2024. During the quarter, double digit growth in housing prices was recorded in eight major cities of the country.

According to the report, house prices have seen an increase of 2-7% in most cities even on a quarterly basis. CREDAI, National President, Boman Irani says that house prices have increased due to strong demand. Especially the demand for premium and luxury homes is what driving the market. These are being purchased extensively across the country. Easy access to loans and other facilities have changed the demand and supply dynamics of residential property.

Prices increased the most in which cities:

According to CREDAI, the demand for residential houses has increased significantly. Due to this, the maximum increase in house prices was wittnessed in Bengaluru, Delhi NCR, Ahmedabad and Pune. There has been a double digit increase in average housing prices here. Apart from this, an increase of 2-7% has been seen in housing prices in most cities on a quarterly basis. The market remains largely favorable for both home buyers and developers. Among the top eight cities, the rates have increased the most in Bengaluru by 19%. Whereas housing prices in Delhi NCR have increased by 16% annually.

Prices of unsold houses have also increased:

Although there is a lot of demand for properties in the country, there is also a lot of inventory which has not been cleared yet. According to the report, unsold inventory has seen an increase of 3% year-on-year. By Q1 2024, unsold inventory across the top eight cities was close to 10 lakh units, of which MMR alone had a share of around 40%. Due to strong demand, there has been a slight reduction in unsold units inventory on a quarterly basis.