Delhi-NCR has emerged as a standout performer in the housing market, registering significant growth in September 2024. With an HPI (Housing Price Index) reading of 178, the region has outpaced its peers, largely driven by robust end-user demand, heightened investor interest, and substantial value appreciation in key micro-markets, such as New Gurgaon, Noida Extension, and the Dwarka Expressway.
The HPI, developed jointly by Housing.com and the Indian School of Business (ISB), serves as a critical indicator of price trends across India’s major residential markets. The all-India HPI reached 128 in September 2024, marking a 2-point quarter-on-quarter increase, reflecting steady growth in property values across major hubs. This reinforces the strength of India’s residential real estate market, even as it navigates global and domestic challenges.
Key Market Trends
The Delhi-NCR region’s remarkable performance is a direct result of strong fundamentals, including increasing demand and strategic developments across its micro-markets. The area’s strong performance is aligned with India’s broader real estate trajectory, where rising property values point to a stable and maturing market. Despite affordability concerns, both end-users and investors remain confident in the market’s long-term value.
Other cities, such as Bengaluru and Kolkata, also saw significant improvements in price growth. Bengaluru’s demand-driven growth in micro-markets like Varthur and Devanahalli resulted in a 12-point jump in its HPI, from 155 to 167, from June to September. Kolkata’s HPI showed a similar increase, from 138 to 150, as improvements in infrastructure and liveability continue to make the city an attractive option for potential buyers, especially those seeking post-retirement homes.
Property Size Preferences
A key trend in India’s real estate market continues to be the demand for larger homes. The report highlighted that 3BHK homes remain the most sought-after, with the HPI for this configuration reaching 136 points, a 5-point increase since June. Interestingly, 2BHK homes saw the sharpest price increase, rising by 7 points to settle at 133 points.
Meanwhile, the 1BHK segment witnessed a slight decline, with its HPI dropping 6 points from 122 to 116. This shift is reflective of changing buyer preferences, with more people opting for larger homes, particularly post-pandemic.
Market Outlook
Amit Masaldan, Chief Revenue Officer at Housing.com, noted that Delhi-NCR’s exceptional performance in the Housing Price Index is a testament to the region’s strength and resilience. He emphasized that the region’s growth aligns with India’s broader real estate trajectory, where rising property values reflect a stable, maturing market.
Shekhar Tomar, Assistant Professor of Economics and Public Policy at ISB, pointed out that while there have been sharp price increases in the NCR region, sales have slowed down considerably. In contrast, the Mumbai region has seen more moderate price growth but has experienced a robust increase in sales. This variance highlights the diversity within India’s real estate market, with different regions responding to varying buyer demands and economic conditions.
The September HPI findings reaffirm the strength and resilience of India’s real estate market. With continued infrastructure development and urbanization, the Indian housing market is well-positioned for sustained growth, offering ample opportunities for buyers, investors, and developers alike.
