These Cities Offer The Cheapest Rates For Buying A House—Learn More 

While the overall housing prices in India have increased by 8 per cent year-on-year (YoY), Ahmedabad and Kolkata still offer the cheapest rates for buying a house.

A joint survey by the Confederation of Real Estate Developers Association of India (CREDAI), Colliers, and Liases Foras shows that the National Capital Region (NCR) saw the highest increase in housing prices at 16 per cent YoY, closely followed by Kolkata at 15 per cent.

Ahmedabad was the most affordable city for buying a house, with the average cost per sq feet at Rs. 6,324 in the first quarter of 2023. Kolkata took the second place at Rs. 7,211 per sq feet.

Interestingly, house prices in the Mumbai Metropolitan Region (MMR) remained the same compared to the same quarter of the previous year. In Kolkata, house prices rose by 15 per cent.

The report also highlights the rise in unsold inventory, which increased by 12 per cent YoY in Q1. Hyderabad and Ahmedabad saw the highest surge compared to the previous year.

Around 95 per cent of the unsold inventory in Mumbai (MMR), Delhi (NCR), Ahmedabad, Hyderabad, Kolkata, Pune, Bengaluru, and Chennai comprised under-construction units, suggesting ongoing housing construction projects in these cities.

The MMR region had the highest average house price at Rs. 19,219 per sq feet, followed by Delhi-NCR at Rs. 8,432, Hyderabad at Rs. 10,410, Kolkata at Rs. 7,211, Pune at Rs. 8,352, Bengaluru at Rs. 8,748, and Chennai at Rs. 7,395.

Ahmedabad Has Most Affordable House Prices

The report notes that the house price in Ahmedabad may vary based on the neighborhood. In Q1 2023, the average housing prices per sq feet in the city stood at Rs. 6,324.

The city saw an 11 per cent YoY increase in housing prices, with the recent spike in Jantri rates, the minimum rate prescribed by the Gujarat government for registering a property in the state. As such, house prices in Ahmedabad are expected to continue to rise. 

Ahmedabad also saw a spike in unsold inventory, a 37 per cent YoY jump, driven by new launches. The ongoing infrastructure developments and its proximity to GIFT City led to increased demand for houses, especially in the NorthWest suburb, the report said.

Other Findings

Delhi NCR saw the highest increase in house prices among other cities, at 16 per cent YoY. In addition, the Dwarka Expressway region saw the highest jump in prices at 59 per cent YoY, followed by Golf Course Road at 42 per cent. 

Most unsold units are concentrated in the Noida region, with 42 per cent of them in the price range of Rs. 2,500 to 5,000 per sq feet.

MMR saw a dip of 2 per cent in prices YoY, accounting for the highest share of unsold inventory pan India, and rising for the sixth quarter in a row due to new launches, the report said.

In Bengaluru, while the prices increased by 14 per cent YoY in Q1 2023, the Inner North region witnessed a 13 per cent YoY drop in prices due to limited demand.