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Property prices in India’s 8 prime residential markets firmed up further in the past one year amid a spike in the cost of construction, according to the data by online property brokerage firm PropTiger.com. 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.As per the report, due to 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. According to the report, the highest annual jump in prices was seen in the Delhi-NCR property market, with a staggering 57% increase.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.“While we have observed significant price increases, especially in the prime localities of metro and mini metros, it’s crucial to view these developments through a wider lens of India’s economic growth trajectory and urbanisation patterns. The current market dynamics, characterised by a nuanced demand-supply equation, are creating a more stable and sustainable environment for long-term growth,” said Vikas Wadhawan, CFO, REA India & Business Head, PropTiger.com.The western cities of Ahmedabad and Mumbai, along with the southern tech hub of Bengaluru, all experienced healthy price appreciation in the 15-21% range whereas Chennai in south and Kolkata in east saw robust growth of 22% compared to the previous year, indicating strong economic activity and housing demand in these metros.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 most modest 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.“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,” Wadhawan said.Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.
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