Housing prices across the top eight cities in India increased by 10% Year-on-Year (YoY) during Q3 2023, according to a joint report by Credai, Colliers and Liases Foras. The report attributes this increase to steady and sturdy housing demand amid positive homebuyer sentiment and stable interest rates. All eight major cities experienced a notable increase in housing prices, with Hyderabad leading the pack at 19% YoY growth, closely followed by Bangalore at 18% YoY growth.
The housing market is likely to further firm up by the end of 2023, driven by likely strong momentum during the festive season fueled by positive market synergies in the form of attractive incentives, lucrative schemes for the homebuyers and new launches in an already upbeat market, says the report.
Boman Irani, president of Credai National, said, “Homebuyer sentiments have been quite positive in 2023, playing a huge factor in not just the volume of housing registrations, but also indirectly having a cascading impact on increasing housing prices. On the back of a stabilised economy, job security and stable lending environment, we project this sales momentum to continue, with sustainable development and green housing expected to lead the next growth phase in the industry. Developers have also been at the forefront to ensure that it remains a conducive buying environment, facilitating enhanced transparency and providing financial incentives that added to the overall appeal of purchasing homes.”
Badal Yagnik, CEO, Colliers India, said, “The strong 10% annual increase in housing prices across India’s top eight cities during the third quarter of 2023 signifies a competitive and flourishing housing market. Fueled by strong homebuyer sentiments and positive market fundamentals, Hyderabad and Bangalore witnessed the highest price rise at 18-19% YoY during the quarter. Tracing the strong streak of sales momentum with industry consensus, sales estimates already reaching closer to 2022 levels, 2023 is expected to close stronger than 2022. Furthermore, developers are increasingly targeting sustainable projects, with homebuyers’ inclination towards eco-friendly living, affirming a green future for the country.”
Alongside increasing sales, the top housing markets of Bangalore, Hyderabad, Delhi-NCR and Mumbai Metropolitan Region (MMR) saw a surge in new property launches, with a notable emphasis on the mid- and luxury-segments. The mid-segment accounted for the largest share of unsold units at 32%, closely trailed by the affordable segment. However, there was a 1% quarterly drop in unsold inventory, led by favourable market dynamics as of end of September 2023. With increased demand for spacious dwellings, developers continued to launch high-end projects, which pushed housing prices for under-construction units northward in markets like Kolkata, Hyderabad, Delhi-NCR and Bangalore.
Housing prices across Pan India in Q3 2023
| City | Average housing price in Q3 2023 (in Rs/sqft) | QoQ Change | YoY Change |
| Ahmedabad | 6,613 | 2% | 9% |
| Bangalore | 9,471 | 9% | 18% |
| Chennai | 7,712 | 1% | 7% |
| Delhi-NCR | 8,655 | 0% | 12% |
| Hyderabad | 11,040 | 5% | 19% |
| Kolkata | 7,406 | 1% | 12% |
| MMR | 19,585 | 2% | 1% |
| Pune | 9,014 | 6% | 12% |
Source: Liases Foras, Colliers
Pankaj Kapoor, MD, Liases Foras, said, “Last year, the housing market grew by 35%. The sales in the first nine months of the current year grew further by 11% from the previous year. With a 10% increase in the prices, the housing market is at its most productive phase in India; sales, new supply, and prices are witnessing healthy growth.”
Housing trends in Hyderabad in Q3 2023
Hyderabad emerged as the frontrunner with a 19% YoY upswing in housing prices, marking the highest surge among the top eight cities in India. Central Hyderabad, being an established sub-market, recently witnessed new property launches at a market premium, resulting in a notable surge in overall property prices. Moreover, the imminent development of Metro Phase 2 and the Airport Metro Line promises to further elevate the city’s residential landscape, connecting major office hubs to the airport, and is set to catalyse future residential developments.
Housing trends in Bangalore in Q3 2023
Vimal Nadar, senior director and head of research, Colliers India, “In Q3 2023, housing prices in Bangalore’s residential market surged 18% YoY, largely led by the Periphery and Outer East region where housing prices rose 39% annually, driven by high-end and luxury project launches and completion of KR Puram and Whitefield metro lines. The city is emerging as a new luxury destination and several established developers are actively exploring to tap on this growing segment and cater to diverse preferences & demand dynamics. Whitefield, Sarjapur Road and HSR Layout are likely to be the preferred localities for such high-end and luxury developments.”
Housing trends in Delhi NCR in Q3 2023
The unsold inventory in Delhi NCR dropped 7% YoY, indicating a steady momentum in sales in this region. Interestingly, the dip in unsold stock has been seen for the third consecutive quarter this year, reflecting improving market fundamentals.
Housing trends in MMR in Q3 2023
The average housing prices in MMR recorded a notable 2% surge on a sequential basis during the quarter ended September 2023. Navi Mumbai sub-market stood out, with the highest YoY price rise at an impressive 11% in the region. At the same time, the region saw a substantial surge in new launches, especially in suburban and peripheral sub-markets such as Western and Central Suburbs.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
Email: [email protected]
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