The 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, a recent data said.
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The 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, a recent data said.
As per the data analysed by online property brokerage firm PropTiger.com, the 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 per cent 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.
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The highest annual jump in prices was seen in the Delhi-NCR property market, with a staggering 57 per cent 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,” it added.
As per the report, Ahmedabad and Mumbai, along with the southern tech hub of Bengaluru, all experienced price appreciation in the 15-21 per cent range whereas Chennai in south and Kolkata in east saw growth of 22 per cent compared to the previous year, indicating strong economic activity and housing demand in these metros.
Pune saw an 18 per cent increase, suggesting it’s maintaining its appeal for homebuyers while still seeing significant price growth. Hyderabad showed the least growth at 7 per cent, indicating a more stable and mature market.
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