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Amid a boom in the residential property market, average housing prices in eight Indian cities witnessed a steady 3 per cent growth (on-quarter) in the April-June period, a report showed on Monday. 

Delhi-NCR (Rs 11,279 per square feet) and Bengaluru (Rs 11,161 per square feet) saw highest quarterly price rise at 16 per cent and eight per cent, respectively.

On an annual basis, average housing prices at the end of second quarter showed a 12 per cent growth across the eight major cities, according to a joint report by Credai, Colliers and Liases Foras.

Seven out of eight cities saw annual price appreciation, with Delhi-NCR witnessing the highest price rise at 30 per cent (year-on-year), closely followed by Bengaluru.

“With the upcoming festive season - coupled with the government’s focus on infrastructure and a relatively stable lending eco-system - we project this momentum to be further have an impact on both prices and unsold inventory levels, as the industry's demand-supply dynamics change,” explained Boman Irani, President of CREDAI National.

While unsold inventory remained stable on an annual basis at a pan India level, it dropped marginally on a quarterly basis amid healthy sales in housing units.

At 5 per cent, Kolkata saw the highest sequential decline in unsold inventory levels, followed by Pune with 3 per cent dip.

As of Q2, there was an availability of over 10 lakh housing units across the primary market of eight major cities, with Mumbai Metropolitan Region (MMR) alone having about 40 per cent share in unsold inventory levels.

Badal Yagnik, CEO, Colliers, India, said that housing demand has continued to remain healthy over the past few quarters.

“Concurrently, stable interest rates and recent positive budgetary announcements, have provided tailwinds for the housing market of the country,” he added.

Furthermore, preference for spacious housing units in luxury and ultra-luxury segments led up to 12 per cent QoQ growth in average price of 3-4 BHK configurations in Delhi-NCR.