Housing Boom: Prices Soar Amid Strong Demand and Cost Pressures

Housing prices in eight major Indian cities appreciated by an average of 10% in the last quarter due to strong demand and increased input costs, according to a report by CREDAI, Colliers India, and Liases Foras. Delhi-NCR saw the highest annual increase of 31% in housing prices.

A recent report by CREDAI, Colliers India, and Liases Foras highlights a significant 10% average rise in housing prices across eight key cities during the December quarter, spurred by robust demand and rising input costs. Among these, Delhi-NCR led the pack with a staggering 31% annual surge in prices.

The report, which marks a 16th consecutive quarter of rising prices since 2021, underscores a shift in buyer preferences toward spacious living and lifestyle upgrades. CREDAI National President Boman Irani attributes this continued price appreciation to strong homebuyer confidence and evolving consumer preferences.

While price hikes were noted across all regions, experts, including Colliers India's CEO Badal Yagnik, forecast a potential continuation of this trend into 2025. However, new launches have moderated, slightly impacting overall sales. Housing sectors like affordable and mid-segment supply are anticipated to grow, altering the current luxury-dominated market dynamic.