Home Prices

Analysts expect the stabilisation of China's property market, which has experienced a significant slump since 2021, will be a protracted process due to high housing inventory

India's primary housing market may register a modest single-digit price rise in 2025 after appreciating by an average 21 per cent last year as developers are expected to boost new supply to match up demand, according to industry experts. Real estate developers and property consultants are expecting that the RBI will cut the repo rate this year, enabling banks to lower interest rates on home loans. They also hope for some fiscal incentives in the upcoming Budget to boost supply and demand for the affordable housing segment, which has lost sheen in the past few years. New home sales across seven major cities declined for the first time since the pandemic, as a sharp rise in housing prices and still elevated borrowing costs ruined the appetite of buyers in 2024. Sales volume declined 4 per cent during 2024 to 4,59,650 units across seven major cities, while new supply fell 7 per cent to 4,12,520 units, data from consultant Anarock showed. That was the first drop in sales after three .

New home sales in India declined for the first time since the pandemic, as a sharp rise in housing prices and elevated borrowing costs ruined buyers' appetite in 2024 and the real estate industry is now eyeing the upcoming Budget for favourable economic conditions -- a key to reviving demand conditions. The de-growth in the Indian housing market came after three straight years of stellar growth, following the COVID-era downturn, and was attributed in part to a high base in the previous year, a fall in supply of new homes and price appreciation. Anuj Puri, Chairman of Anarock, one of the leading housing brokerage firms in the country, termed the year 2024 as a "mixed bag" for the Indian residential market and noted that, while demand for the affordable housing segment was weak, sales and launches of luxury homes remained strong. India's residential real estate market, estimated to be valued at over USD 300 billion, faced a marginal 4 per cent drop in sales volumes during 2024, ...

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Residential prices in Bengaluru saw the sharpest rise at 10% YoY as focus increasingly shifted toward the development of premium properties.

Average flat size increased by 32% in the last five years: From 1,145 sq ft in 2019 to 1,513 sq ft in H1 2024.

Economic growth in India, Asia's third-largest economy is expected to continue outpacing its major peers

3% increase in unsold inventory in top eight cities of the country, it says

Rising per capita income, moderating inflation, stable commodity prices to support demand, it says

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This is despite the fact that 55% of Indians believe their disposable income had been 'majorly' impacted by inflation

Average housing prices rose by around 20 per cent in the last two years across the top eight cities on rising demand, according to a report by CREDAI, Colliers and Liases Foras. These eight cities include- Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), and Pune. In a joint statement on Wednesday, realtors' body CREDAI, real estate consultant Colliers and data analytic firm Liases Foras said that "prices across the top eight cities in India surged by about 20 per cent in the last two years (2021-2023)." Bengaluru, Delhi NCR, and Kolkata have witnessed the highest rise in average housing prices at about 30 per cent in 2023 compared to 2021 levels, it added. "The current state of real estate is the most productive when sales, supply, and prices are growing, and the price rise is not speculative. These factors work in harmony in a balanced and healthy real estate market, said Pankaj Kapoor, Managing Director, Liases Foras.

The highest rise in prices was witnessed in Delhi-NCR, followed by Bengaluru and Kolkata

In the region, Singapore saw the highest price rise followed by Perth and Brisbane

In 2024, experts suggest that home affordability, as well as sales, are expected to improve further on the back of cooling inflation and the likelihood of lower interest rates

The contributing factors include narrowing the gap between rents and EMIs, increase in affordability and security of owning a home

The rise in housing prices and mortgage rates have impacted affordability levels to buy homes in the last two years across seven major cities but it may improve next year due to a likely reduction in repo rate, according to JLL India. The improvement in affordability levels would further boost housing sales, which have risen despite increases in property prices and interest rates on home loans. The consultant on Sunday released its 'Home Purchase Affordability Index' (HPAI), which signifies whether a household earning an average annual income (at an overall city level) is eligible for a housing loan on a property in the city at the prevailing market price. "The rising repo rate in 2022 as the RBI reacted to the global recessionary and inflationary trends, plus a strong demand recovery spurring price hikes, worsened affordability in 2022," the report said. In 2023, the consultant said that affordability levels are likely to marginally worsen or remain the same when compared to 2022

The survey predicted home prices in large urban centres Mumbai, Delhi and Bengaluru rising 6.0%, 7.0% and 7.0% next year, respectively

The highest jump in home rent of 31% was recorded in the Whitefield region in Bengaluru

The price rise was the steepest in Manila at 21.2%, followed by 15.9% in Dubai and 10.4% in Shanghai