Housing Prices in MMR Continue Upward Climb Amid Robust Demand

India’s residential real estate market remains buoyant as housing prices across the top eight cities climbed 11% year-on-year (YoY) during Q3 2024, reaching an average of INR 11,000 per square foot. This marks the 15th consecutive quarter of rising prices since 2021, driven by sustained demand and optimistic buyer sentiments.

Among the leading cities, the Mumbai Metropolitan Region (MMR) continues to top residential price trends, recording a 4% YoY increase in housing prices. While MMR’s growth is moderate compared to other regions, such as Delhi NCR, which saw a staggering 32% YoY rise, and Bengaluru at 24%, it remains the largest contributor to unsold inventory, holding a 40% share of the total 10 lakh unsold units across the eight cities by the end of September 2024. The ongoing rise in prices reflects changing consumer preferences for larger, more aspirational homes. Boman Irani, President of CREDAI National, remarked, “The housing market’s growth underscores positive homebuyer sentiment. The trend of bigger homes mirrors the evolving aspirations of buyers, and we anticipate this robust momentum to persist into the new year.”

While sales have stabilised following record-breaking years, the final quarter of 2024 is expected to deliver strong activity. Developers are increasingly focusing on compact, affordable housing to cater to price-sensitive segments, while introducing attractive payment plans and incentives to sustain buyer interest. Badal Yagnik, CEO of Colliers India, added, “Steady price growth is a testament to the market’s health. However, potential repo rate cuts and flexible payment options could provide much-needed financial relief to homebuyers in the near term.” As housing prices continue their steady ascent, MMR remains a focal point for residential activity, bolstered by strong fundamentals and evolving market strategies. The outlook for 2025 appears promising, with developers recalibrating offerings to match shifting buyer preferences and economic conditions.