23% Rise in Housing Prices: 29% Increase in Delhi-NCR and the Current State of India’s Real Estate Market

Homebuyers in India are finding it hard because housing prices in big cities have gone up a lot. A report from Anarock, a real estate company, says that the average price of homes in the top seven cities has increased by 23% compared to last year.

Cities like Delhi-NCR and Bengaluru have the biggest price increases, both up by 29%. Here’s why prices are going up:

Why Are Housing Prices Going Up?

1. Higher Building Costs:

It costs more to build homes because materials and labor are more expensive.

2. More Demand for Fancy Homes:

Many people want to buy nice, expensive homes, which raises prices.

3. Growing Economy:

As the economy improves, people have more money to spend on houses.

4. People Moving to Cities:

More people are leaving villages to live in cities, which puts pressure on housing.

5. Not Enough Land:

There isn’t enough land in big cities to build new homes, so prices go up.

Average Housing Prices in Key Cities

Here’s how much homes cost in some important cities:

Delhi-NCR: Average Price: ₹7,200 per square foot, Increase: 29%

Bengaluru: Average Price: ₹8,100 per square foot, Increase: 29%

Hyderabad: Average Price: ₹7,150 per square foot, Increase: 32%

Mumbai: Average Price: ₹16,300 per square foot, Increase: 24%

Pune: Average Price: ₹7,600 per square foot, Increase: 16%

Chennai: Average Price: ₹6,680 per square foot, Increase: 16%

Kolkata: Increase: 14%

Land Prices Rise, Homes Become More ExpensiveAccording to Anarock, the average price of residential properties in the top seven cities has increased by 23% over the past year. Home prices rose from ₹6,800 per square foot in the third quarter of last year to ₹8,390 per square foot in the third quarter of 2024.

According to Anarock, the average price of residential properties in the top seven cities has increased by 23% over the past year. Home prices rose from ₹6,800 per square foot in the third quarter of last year to ₹8,390 per square foot in the third quarter of 2024.

Fewer New Homes Being Built

Even with rising prices, the number of new homes being built has gone down by 19%. This means builders are being careful. But there are still many people wanting to buy homes.

Home Prices Rise, But Sales Decline

According to data from Anarock, home sales dropped by 11% in the July-September period, totaling 107,060 units, compared to 120,290 units in the same period last year.

In the top seven cities, there was a 19% decrease in the supply of new homes. During July-September, 93,750 new homes were offered, down from 116,220 units in the same period of 2023.

Anuj Puri, Chairman of Anarock, stated, “The fact that sales are higher than the supply of new homes indicates that the demand-supply balance remains strong.”

Conclusion

In short, housing prices in India’s major cities are rising for several reasons, like higher building costs and strong demand for homes. This makes it tough for buyers, but it also shows the housing market is busy. Buyers should be careful and get help to make good choices.