Average property values in India’s National Capital Region (NCR) showed a whopping 49% appreciation in the past one year as demand for luxury homes continued to sustain. This comes amid an escalation in the cost of building materials and labour, according to a new report by PropTiger.com.
As per the report titled ‘Real Insight: Residential Annual Round-up 2024’, property prices increased across cities during the October-December period of 2024, albeit in varying degrees. While price growth slowed in the southern housing market of Hyderabad after nearly a decade of sharp rise, all other cities covered in the analysis showed double-digit annual appreciation.
Source: Real Insight Residential – Annual Round-up 2024, Housing Research
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Cities covered in the analysis are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad & Faridabad), Mumbai Metropolitan Region (Mumbai, Navi Mumbai & Thane) and Pune.
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“High-net-worth individuals 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 single biggest 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 company said in a statement.
Property prices in India’s financial capital Mumbai rose by an average 18% YoY because of similar factors, the report said. 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, it added.
“No doubt, this kind of price growth is indicative of underlying demand, growth prospects and a positive buyer sentiment. However, cost pressure might further affordability concerns in a country where a large part of the population relies on government subsidies for house purchases.
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