Premium residential property prices have spiked considerably in Mumbai, Bengaluru, Delhi, Gurugram, and Noida in 2022, real estate consultant Savills India said in a report.
Demand for rental properties has also increased as more people return to work locations, the study finds.
Premium residential property prices have spiked considerably in Mumbai, Bengaluru, Delhi, Gurugram, and Noida in 2022, real estate consultant Savills India said in a report.
Luxury home prices in top cities and metropolitan regions rose as the Reserve Bank of India (RBI ) raised its repo rates, the benchmark lending rates, by 225 bps this year to curb high inflation, the report said.
The survey covered the residential markets of Mumbai, Bengaluru, Delhi, Gurugram, and Noida.
“In the backdrop of a hybrid work model, end-users are considering larger homes in residential complexes offering superior facilities,” the report said, noting that demand for rental homes has increased “as professionals returned to their work locations”.
Shveta Jain, managing director of residential services at Savills India, said, “Investor interest was also prominent for leisure locations offering both rental and capital appreciation opportunities.”
Jain said developers have been making a beeline for land parcels measuring 2,000 square metres and three acres in places like Goa, Alibaug, Kasauli, etc., to capitalise on the demand for second homes. The demand spike has led to “a paucity of supply and increase in values for clear title land parcels”.
Under-construction projects in top cities saw higher price appreciation than completed projects. It reflects buyers ’ preference for new launches with better amenities and spacious units. Preference for quality homes will likely keep the demand in the premium segment steady in 2023.
Price Trends City-Wise
Mumbai: Average prices for completed projects in Mumbai rose by one per cent Y-o-Y (year-on-year) and three per cent Y-o-Y increase in average prices for under-construction properties.
The survey revealed Navi Mumbai and Thane micro-markets saw a 3-8 per cent jump Y-o-Y due to consistent demand for completed and under-construction properties. The city witnessed higher interest among non-resident Indians (NRIs) to sell properties, mainly in South Mumbai and Central Mumbai.
Bengaluru: Prices of completed and under-construction premium housing projects increased in the range of 4-8 per cent Y-o-Y in the city’s various micro-markets in 2022.
Central Bengaluru saw the highest per sq. feet average price increase at around Rs 19,000 and Rs 15,500 for completed and under-construction projects, respectively. South Bengaluru registered the highest Y-o-Y increase in premium housing prices at 8 per cent.
Delhi: Average capital value for land parcels in Delhi rose 2 per cent Y-o-Y. South Central region saw the biggest hike with an 8 per cent Y-o-Y growth. The average floor prices in the premium segment stayed constant across Delhi’s micro-markets in 2022.
Gurugram: Prices of completed and under-construction projects in Gurugram increased by 15 per cent and 22 per cent Y-o-Y, respectively. With a 30 per cent Y-o-Y increase, Dwarka Expressway registered the highest price growth for under-construction projects in 2022. The prices of plots also rose significantly, rising 32 per cent Y-o-Y in 2022. Dwarka Expressway saw a 50 per cent Y-o-Y increase, the highest growth in plotted development. The under-construction projects witnessed the highest price appreciation across all micro-markets in the city compared to the completed projects.
Noida: Property prices in the city rose 9-17 per cent Y-o-Y across all micro-markets in 2022. The prices of completed projects in Noida grew 12 per cent Y-o-Y, while costs of the under-construction projects saw a steady growth of 14 per cent Y-o-Y in 2022, compared to 10 per cent in the previous year.