House rates increase

Despite the real estate market appearing somewhat sluggish, housing prices in Hyderabad have not declined; instead, they have seen a slight increase. According to a joint report by CREDAI, Colliers, and Liases Foras, housing prices in Hyderabad rose by 2% during the October-December quarter of 2024. Across eight major cities in India, housing prices increased by an average of 10%, with Delhi recording the highest growth of 31%.

City-wise, housing prices in Hyderabad increased by 2% compared to the same period in the previous year, reaching Rs 11,351 per square foot. In Delhi, prices surged by 31% to Rs 11,993 per square foot, while Bengaluru saw a 23% rise, reaching Rs 12,238 per square foot. Ahmedabad recorded a 15% increase, with prices reaching Rs 7,725 per square foot, and Chennai experienced a 6% rise to Rs 8,141 per square foot. The Mumbai Metropolitan Region (MMR) saw a 3% increase, bringing prices to Rs 20,725 per square foot. In Pune, housing prices rose by 9% to Rs 9,982 per square foot, while Kolkata had the lowest increase at just 1%, reaching Rs 7,971 per square foot.

The report attributes the rise in housing prices to strong demand and higher construction costs. It also noted that housing prices have increased for the 16th consecutive quarter. According to CREDAI National President Boman Irani, the growing preference for spacious homes and improved lifestyles has fuelled housing demand. He also highlighted that rising construction costs and land acquisition expenses have contributed to price increases.

Colliers India CEO Badal Yagnik predicted that housing prices in these eight major cities will continue to rise this year. Additionally, Liases Foras MD Pankaj Kapoor stated that the supply and sales of affordable and mid-range housing segments are expected to grow in the coming months. However, the report also mentioned a slight decline in housing sales during the December quarter, mainly due to moderate new housing launches.