India’s average housing prices increase 10% in Q4 of 2024

In the fast-changing real estate scenario across eight cities in India, average housing prices witnessed a 10% annual rise at INR 11,266 per sq ft during Q4 2024 backed by a steady demand momentum and positive market sentiments, according to Colliers-Credai Housing Price Tracker report for Q4 last year.

All the 8 cities under review saw an annual increase in housing prices with Delhi NCR witnessing the highest rise at 31% YoY, followed by Bengaluru at 23% YoY rise.  Overall unsold inventory dropped 5% on an annual basis and continued to witness a sequential drop for the fourth consecutive quarter. 

All the 8 cities under review witnessed a drop in unsold units on an annual basis amid healthy demand. Pune saw the highest annual drop in unsold inventory at 14%, closely followed by Hyderabad with 13% YoY drop.

In Ahmedabad, average prices surged 15% YoY, amid rise in demand for affordable and mid-segment housing. 

Bengaluru recorded 23% annual price rise during Q4 2024. Inner east  and inner west micro markets, particularly witnessed high traction in luxury and ultra-luxury segments, and saw  ~40% YoY rise in average prices.  With about 34% annual rise in housing prices, 4BHK configurations particularly witnessed strong demand amidst rise in preferences for spacious amenity rich dwellings. 

In Chennai, Overall housing prices surged.  6% YoY in the city. Central Chennai witnessed the highest annual price rise at 11% followed by Coastal Chengalpattu with 8% YoY rise.

In Delhi NCR, housing prices increased annually by 31% during Q4 2024, the highest rise across major Indian cities, backed by a strong sales momentum particularly in luxury and ultra-luxury segments.  About 96% of the unsold units in the region were in under-construction properties of which majority were in Noida Expressway and Noida Extension micro markets.  While Dwarka expressway continued to see the highest annual price rise at 58%, Greater Noida too witnessed impressive growth of 52% YoY. The upcoming Jewar international airport, will continue to spur residential prices in catchment areas.

In Hyderabad, Housing prices in the city saw a slight rise on an annual basis at 2%. Ready properties in Southwest Hyderabad witnessed 13% annual rise in average housing prices led by upcoming metro expansion plans towards Kokapet and Shamshabad.  Ready units in 1BHK configuration witnessed a 22% YoY rise backed by rise in demand from IT professionals in western areas of the city.

Average housing prices in Kolkata increased marginally by 1% on an annual basis. Demand was strongest in Southwest Kolkata & Howrah (West Kolkata). These micro markets witnessed around 20% YoY growth in residential capital values.  Unsold inventory dropped 10% YoY in the city.

In Mumbai, housing prices in MMR witnessed a 3% annual rise with notable surge in Panvel at 11% YoY rise followed by Thane and island city ~6% YoY rise each.  After almost three years, unsold inventory levels dropped for the first time to around 389,800 units as of Q4 2024.   The upcoming Phase II of Metro Line 3 is likely to  further boost residential activity in Island city and Western suburbs in the coming quarters.

In Pune, housing prices in Pune surged 9% annually amid rise in demand for mid and luxury segment housing. Camp micro market saw the highest annual price rise at 20%.   Unsold inventory fell 14% YoY, the highest annual drop in major Indian cities. The upcoming Pune Ring Road and metro expansion projects are likely to enhance residential activity especially in Nagar Road, Hadapsar, Kothrud and other peripheral areas in the coming years.

Has the recent budget allowed investment in two properties for NRIs?  What are the tax implications?  Ashita Aju, Sharjah.

Yes.  The budget has allowed tax exemption for two self-occupied properties.  NRIs can claim nil annual value for the second property if it is self-occupied, without conditions.  It also removes the burden of notional rental income for a second home.  It will help home owners even if they are not physically living in the house.  It does mean that the proof requirements have been eliminated which is a major relief. 

What is the TDS rate applicable from sale consideration while selling a unit.  Rashmi Kant,  Dubai

In the case of purchase from residents, there is no need to deduct tax at source if the sale proceeds do not exceed Rs 5 million.  In case of purchase from NRIs, tax has to be deducted at source under section 195 irrespective of the amount of sales consideration.