Property prices show sharp rise in India’s prime residential markets in 2024 amid land, building material, labour cost escalation: PropTiger.com report
NCR Housing Market Sees the Steepest Surge in Property Values, with Rates Jumping 49% YoY
National, January 29th 2025: Average property values in India’s national capital region 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, a new report by digital real estate transaction and advisory platform PropTiger.com shows.
According to the report, titled Real Insight: Residential Annual Round-up 2024 by PropTiger.com, 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.
PRICE TRENDS
|
City |
Q4 23 |
Q4 24 |
YoY |
|
Ahmedabad |
4,000 |
4,402 |
10% |
|
Bengaluru |
6,744 |
7,536 |
12% |
|
Chennai |
6,200 |
7,173 |
16% |
|
Delhi NCR |
5,445 |
8,105 |
49% |
|
Hyderabad |
6,842 |
7,053 |
3% |
|
Kolkata |
5,100 |
5,633 |
10% |
|
MMR |
10,712 |
12,600 |
18% |
|
Pune |
6,140 |
7,108 |
16% |
Source: Real Insight Residential – Annual Round-up 2024, Housing Research
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.
“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. 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,” said Mr. Dhruv Agarwala, Group CEO, Housing.com &
Proptiger.com.
NOTE: Housing markets covered in the report includes Ahmedabad,
Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater
Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai & Thane) and Pune.
