Rate of residential unit price change India H2 2023, by city

In the second half of 2023, Hyderabad showed the highest growth of 11 percent in residential unit price. There was a general increase in prices per square feet in the residential market in all eight major metropolitan regions. The residential real estate market has slowly recovered from coronavirus pandemic. The coronavirus (COVID-19) pandemic as well as a high number of unsold inventories in many cities, especially in the premium and luxury segments, are perceived to be the main drivers for decreasing prices.

India’s residential market

While the majority of India’s population is still living in rural areas, urbanization is increasing. This results in a high demand for affordable housing in big cities for workers moving from rural parts of the country. Despite a new momentum in governmental efforts for affordable housing in recent years, there is still a gap between the low, middle, and high income groups in terms of demand and supply of housing units.

The future outlook

Over the last ten years, housing in the biggest Indian cities has become more affordable. Affordability sets income in relation to housing prices. Nevertheless, it is seen that the residential real estate market would continue to grow significantly in the coming years.