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India Housing Price Index 2024: Premium Homes in Demand

New Delhi, March 25, 2025: As India's wealthy population grows at a rapid pace, residential property prices across major cities continue to rise steadily, according to the All-India Housing Price Index (HPI) 2024. With the number of high-net-worth individuals (HNIs) and ultra-HNIs (UHNIs) expanding at a 12% CAGR, there's a clear surge in demand for larger, premium homes outpacing sales in the affordable housing category. The HPI, developed jointly by Housing.com and the Indian School of Business (ISB), is a key reference for developers, homebuyers, investors, and policymakers to track price trends in India s evolving housing market. Key Findings from HPI 2024 Pan-India Index at 129 Points As of December 2024, the all-India Housing Price Index stood at 129, marking a four-point increase since January. While this indicates ongoing price appreciation, the growth has moderated from 2023 s peak when the index reached 132 points. NCR Tops the Chart at 195 Points The National Capital Region (NCR) leads the index, driven by strong demand, infrastructure upgrades, and new developer interest. Locations like Dwarka Expressway, Sohna, and Noida Extension are especially attractive to investors. Positive Growth in Most Cities Except for a few markets like MMR (Mumbai Metropolitan Region) and Ahmedabad, most cities showed upward price movement. The rising cost of land and construction hasn t slowed premium launches, particularly in high-demand zones. Bengaluru & Hyderabad Follow The strong performance of Bengaluru and Hyderabad both tech-driven cities secured their positions as the second and third most dynamic markets on the index. Demand Shifting Toward Larger Homes The index also highlights a clear preference among homebuyers for spacious configurations: 3BHK Demand Surges The HPI for 3BHK homes climbed to 141 in December, up 11 points since January 2024. 1BHK Segment Declines In contrast, the index for 1BHK homes fell to 117 from 123, reflecting waning interest from budget-conscious buyers and a market tilt towards larger homes. According to ISB s Shekhar Tomar, the rise in 3BHK prices underscores a long-term shift in consumer preference towards roomier residences, possibly due to hybrid work models and changing lifestyle needs. The affordable segment, on the other hand, is seeing declining traction. Rising Prices & Affordability Concerns Commenting on the data, Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, said that the rising prices mirror India s growing economic confidence. However, this also increases pressure on the middle class. While the government has introduced tax incentives and interest rate relief in the Union Budget 2025-26, external geopolitical factors could influence input costs and market dynamics. Methodology of the Housing Price Index The HPI is based on the Laspeyres Price Index formula. Data is gathered from 13 cities: Ahmedabad, Bengaluru, Chennai, Faridabad, Gandhinagar, Ghaziabad, Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, and Pune. It includes variables like per sq ft pricing, transaction value, number of bedrooms, construction stage, and inventory levels. Conclusion India s real estate landscape is seeing a notable shift towards premium housing, supported by rising affluence and infrastructure growth. Cities like NCR, Bengaluru, and Hyderabad are leading the price growth trend, while larger configurations such as 3BHKs are now the preferred choice for modern buyers. For real estate stakeholders, staying aligned with this trend is essential for investment planning and market strategy.