India's housing boom: Prices are up, but home loans are cheaper

Housing in India became costlier for the 16th successive quarter in Q4 2024, with Delhi-NCR recording the maximum rise in the prices of apartments among the country's top eight cities.

The region saw a 31% yearly growth in housing prices, led not only by surging demand—especially for luxury and ultra-luxury apartments that pushed pan-India average housing prices upwards—but also due to growing land and labour costs, as well as a slowdown in construction-related approvals, among other factors.

The upcoming Jewar International Airport in Noida also played its part in spiking residential prices in the catchment and will continue to do so in 2025. While the Dwarka Expressway witnessed the highest annual price rise at 58%, residential rates in Greater Noida, too, saw a 52% increase, according to the Q4 Housing Price Tracker released by industry apex body Confederation of Real Estate Developers’ Associations of India (CREDAI) along with real estate consultancy Colliers India and non-brokerage real estate research firm Liases Foras.

Even Bengaluru and Ahmedabad saw housing prices go up 23% and 15% year-on-year, respectively, with the demand for 1BHK apartments in the southern city going up significantly due to its large migrant population. Kolkata, meanwhile, saw the least movement, with average housing prices going up by just 1% in 2024.