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Average home prices in top eight cities up 10% in Jan-Mar quarter

Bengaluru’s Periphery and Outer East micro-market saw the steepest rise at 32 per cent followed by the Periphery and Outer North with 18 per cent annual growth in average housing prices.

Average home prices in top eight cities up 10% in Jan-Mar quarter

Home loan Representatives image (Photo:IANS)

In the January-March quarter, the average home prices in India’s top eight cities increased 10 per cent in the January-March quarter compared to the same time last calendar year, said a report on Thursday.

According to CREDAI – Colliers – Liases Foras Housing Price-Tracker Report Q1 2024, the highest price surge was in Bengaluru at 19 per cent to Rs 10,377 per square foot compared to Rs 8,748 per square foot in the same quarter last year.

Bengaluru’s Periphery and Outer East micro-market saw the steepest rise at 32 per cent followed by the Periphery and Outer North with 18 per cent annual growth in average housing prices.

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Delhi-National Capital Region followed with a surge of 16 per cent to Rs 9,757 per square foot compared to Rs 8,432 per square foot last year. The highest increase was along the Dwarka Expressway at 23 per cent.

Ahmedabad and Pune followed with an increase of 13 per cent each to Rs 7,176 per square foot and Rs 9,448 per square foot, respectively.

Boman Irani, president of CREDAI National, referring to the report, said the surge in housing prices is a direct consequence of the robust housing demand that we’re witnessing, especially in premium and luxury housing, by homebuyers across the country.

The report highlighted that the top eight cities had a 3 per cent increase in unsold inventory, showing that demand for homes was lower than the supply.

As of Q1 2024, unsold inventory across the top eight cities stood close to 1 million units, with the Mumbai Metropolitan Region alone having almost a 40 per cent share.

Developers are likely to keep a close watch on available stock and anticipated demand while timing their new launches in the near term, said the report.

Despite a surge in inventory, home prices are likely to increase due to lending rate cuts expected later this year.

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