Riding on the back of robust demand for luxury properties, average property prices in the national capital region (NCR) showed a 49 percent year-on-year (YoY) appreciation in the past one year even as the property prices across other Indian micro-markets also witnessed substantial growth.
According to a report by digital real estate transaction and advisory platform PropTiger.com, the average property prices growth comes amid an escalation in the cost of building materials and labour.
The report, titled ‘Real Insight: Residential Annual Round-up 2024 by PropTiger.com’, showed property prices increased across cities during the October-December period of 2024, albeit in varying degrees.
The data showed that the highest 49% growth in the average property prices was witnessed in Delhi-NCR micro-market while the lowest 3 percent price growth was seen in the southern housing market of Hyderabad. All other cities covered in the analysis showed double-digit annual appreciation. Apart from Delhi-NCR and Hyderabad other cities covered in the survey include Bengaluru, Chennai, Kolkata, Mumbai Metropolitan Region (Mumbai, Navi Mumbai & Thane), Ahmedabad and Pune.
Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com, said that such kind of price growth is indicative of underlying demand, growth prospects and a positive buyer sentiment.
He said that, however, cost pressure might further affordability concerns in a country where a large part of the population relies on government subsidies for house purchases.
“Amid hardening inflation and slowing growth, the government must launch policy measures that take care of this crucial aspect to promote affordable housing. Positive tweaks in taxation laws in the upcoming Budget and rate cuts by the RBI could go a long way in ensuring greater affordability for India’s burgeoning Middle Class,” he said.
The report highlighted that high-net-worth individuals (HNIs) are deploying money in Delhi-NCR — this region is home to over 10 recently-listed start-ups — has kept the growth momentum going for this coveted residential market as developers prioritise premium offerings to affordable homes.
This is the key reason why home sales in key contributors like Gurugram (144% increase YoY), Greater Noida (54% increase YoY) and Noida (3% increase YoY) showed annual rise in sales even though Pan-India numbers showed 26% year-on-year dip, the report observed.
A spokesperson of Bayside Corporations said that these encouraging numbers of price appreciation and strong sales are testament to the robust demand for luxury properties in Delhi NCR region.
“As per a recent survey by India Sotheby’s International Realty, most of the HNIs and UHNIs are preferring to park their money in luxury real estate assets. This is boosting the demand of luxury and super residences in the region and due to which luxury real estate assets are selling fast. The demand is likely to continue its growth momentum in the coming quarters as well,” he said.
The report also highlighted that property prices in India’s financial capital Mumbai rose by an average 18% YoY. Home to India’s biggest business stalwarts, Bollywood stars and sports celebrities, Mumbai is the most unaffordable housing market in the world’s most populous country, the report added.
