 "Delhi-NCR sees biggest jump in property prices at 57%; Hyderabad lowest")
Property prices in India’s eight prime residential markets firmed up further in the past one year amid a spike in the cost of construction, according to data analysed by online property brokerage firm PropTiger.com.
In a recent report by PropTiger.com, a subsidiary of REA India, which also owns Housing.com, it was observed that average property prices in most cities analysed experienced double-digit growth in the third quarter of 2024 (Q3CY2024) compared to the same period last year. The report, titled 'Real Insight Residential: July-September 2024,' attributes this price appreciation to rising demand, especially for high-end properties.
“The fact that the Reserve Bank has maintained a status quo on the repo rate at 6.5% in the past 10 policy meetings is adding further pressure on pricing. In the absence of a rate cut, developers as well as buyers continue to pay a comparatively high interest on loans, which ultimately impacts housing affordability,” the report said.
According to the report, the highest annual jump in prices was seen in the Delhi-NCR property market, with a staggering 57% increase. Price insights
“The rising construction costs have necessitated adjustments to the basic selling price (BSP) of residential units in this market. The combination of strong end-user demand for luxury properties and renewed investor confidence have fueled the upward trajectory of housing prices here,” the report said.
More From This Section
The western cities of Ahmedabad and Mumbai, along with the southern tech hub of Bengaluru, all experienced price appreciation in the 15-21% range whereas Chennai in south and Kolkata in east saw growth of 22% compared to the previous year, indicating strong economic activity and housing demand in these metros. This trend points to sustained demand in these economically vital centers.
Pune, often seen as a more affordable alternative to Mumbai, also saw an 18% increase, suggesting it's maintaining its appeal for homebuyers while still seeing significant price growth.
Hyderabad, known for its IT sector, showed the least growth at 7%, indicating a more stable and mature market.
Quarter-over-quarter, most cities showed more modest increases or even slight plateaus. This could suggest that the market frenzy might be cooling off slightly.
“Looking ahead, the real estate sector is poised to play a pivotal role in India's economic narrative, driven by factors such as infrastructure development, smart city initiatives, and the growing prominence of tier-2 and tier-3 cities. The long-term outlook for Indian real estate remains robust, offering diverse opportunities across residential, commercial, and emerging asset classes for those who approach the market with a strategic, forward-looking perspective,” said Vikas Wadhawan, CFO, REA India & Business Head, PropTiger.com.