Housing prices heading northward, unsold inventory move in opposite direction

Homebuyers' sentiments across the country seem to be very positive and bullish.

- RITWIK MUKHERJEE

More importantly, a large number of new, aspirational homebuyers are coming to the fore. Little wonder therefore, that realty players have lapped up the situation and are just loving the way it's moving. This has been amply reflected in the fact that average housing prices across the top eight markets in India rose 11 per cent YoY at Rs 11,000 per sq ft during Q3 2024, led by sturdy demand and positive market sentiments.

Interestingly, average housing prices have increased for the 15th consecutive quarter since 2021. All the eight major cities saw an annual increase in housing prices with Delhi NCR witnessing the highest rise at 32 per cent YoY, followed by Bengaluru at 24 per cent YoY rise during the quarter. After registering record high sales over the last two years, the demand momentum across the top cities is stabilizing. Nevertheless, with anticipation of healthy residential activity in the last quarter, 2024 is likely to end on a strong note.