Delhi-NCR records highest surge in house prices
Gurugram, March 3
The average price of houses across India’s cosmopolitan cities has increased by nearly 20 per cent in the last two years, with Delhi-NCR recording the highest surge.
As per the latest data from real estate consultant Colliers and data analytic firm Liases Foras, the average per-square-foot price of houses in major cities like Bengaluru and Kolkata has increased by over 30% between 2021 and 2023. It is however the Delhi-NCR which reported the steepest rise in home prices — average per sq ft price of houses jumped 32 per cent from Rs 6,958 in 2021 to Rs 9,170 in 2023.
The demand for residential units has also increased in the NCR, with Gurugram taking the lead in the sale of residential units.
Renewed demand for houses post the pandemic and a steady rise in input costs has been credited for this latest round of price escalations in the country’s residential real estate market.
“Year-on-year increase in housing prices is a combination of a number of factors, characterised by strong, robust demand from homebuyers especially for mid and premium segments, along with the existence of a conducive buying ecosystem coupled with healthy macro-economic factors, and the rise in prices of construction materials,” said Boman Irani, national president of realtors’ apex body CREDAI.
Irani said the ongoing momentum also encouraged numerous developers, leading to the increase in housing supply across major cities in India. We expect both housing demand and supply to increase further in 2024, not only in top eight cities but in tier II and tier III regions as well.
“In 2023, the markets outperformed in several areas including an uptick in high-end and luxury segments, scaling new peak in sales volume, infrastructure-led development, resulting in deeper price discovery across most markets,” said Badal Yagnik, Chief Executive Officer, Colliers India.
“Looking ahead to 2024, the market is well poised to maintain its current trajectory, with the mid and luxury segments expected to thrive further, offering lucrative opportunities for investors and homebuyers alike,” he added.
The report stated that Bengaluru witnessed 31 per cent rise in average prices from Rs 7,609 per sq ft to Rs 9,976 per sq ft. Kolkata registered a 30 per cent rise in average prices to Rs 7,912 per sq ft in 2023, up from Rs 6,081 per sq ft in 2021.
Among the other top markets, Pune recorded 24 per cent rise during the two years while the average per sq ft price of houses rose 26 per cent to Rs 11,083 in Hyderabad. Ahmedabad, one of the cheapest markets to purchase a house, saw 18 per cent rise in average price per sq ft.
In the Mumbai Metropolitan Region (MMR), which is the largest market for residential homes in India, prices almost remained stable during the period. In 2023, average price in the MMR stood at Rs 20,047 per sq ft, recording a mere 2 per cent rise as compared to Rs 19,657 per sq ft in 2021.
