The residential property market price in India rose 6 per cent year-on-year (y-o-y) during the April-June 2023 quarter, with Gurugram emerging as the frontrunner at 12 per cent y-o-y.
Digital real estate brokerage company PropTiger.com said in its report that the price rise was driven by the increase in demand for housing.
Overall Market Trends
According to the report, the weighted average price of residential properties across eight major Indian cities reached Rs 7,000-7,200 per square foot during the April-June 2023 quarter, rising 6 per cent from the previous year. These cities include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), Delhi-National Capital Region (Delhi-NCR), and Pune.
Says Vikas Wadhawan, group CFO, REA India, and Business Head, PropTiger.com: “While this upward trend in capital values is attracting investors to India’s key real estate markets, the increase in new supply is helping to moderate price increase.”
Housing sales across the eight cities experienced an 8 per cent annual increase, reaching 80,250 units during the April-June 2023 quarter, mainly driven by demand in Mumbai and Pune, Wadhawan added.
Gurugram’s Growth
Gurugram, located in NCR, witnessed the highest appreciation at 12 per cent, with prices ranging from Rs 7,000-7,200 per square foot.
Ravi Aggarwal, managing director, Signature Global (India) Ltd said, Gurugram’s thriving infrastructure, burgeoning businesses, abundant job opportunities, low supply of flats, and a substantial gap between the Delhi and Gurugram property rates have contributed to its immense growth potential.
Says Ankita Sood, head of research, REA India (PropTiger.com, Housing.com & Makaan.com): “The city continues to dominate in terms of Grade A commercial development, solidifying its position as a top choice for business. As a ripple effect, the Gurugram property market has seen good traction for both luxury and mid-segment housing.”
Recently, on June 8, 2023, the Haryana government increased the allotment rates by 20 per cent under its affordable housing policy, effectively increasing allotment rates in Gurugram.
Yashank Wason, MD, Royal Green Realty said that the move will benefit affordable housing in Gurugram and alleviate the burden on developers, encouraging more development in this segment.
“The rise in raw material costs had made it almost impossible to offer affordable housing at previous rates, making this policy revision crucial for the real estate market,” he says.
Price Rise In Other Cities
Bengaluru closely followed Gurugram with a 9 per cent increase in price, followed by Noida at 8 per cent. Ahmedabad saw a 7 per cent year-on-year increase in price, offering the most affordable prices among all cities at Rs 3,700-3,900 per square foot. Delhi-NCR saw a 6 per cent rise to Rs 4,800-5,000 per square foot. Chennai reported a modest 3 per cent increase in prices.
A price rise of 3 per cent rise was recorded in Mumbai and Pune. Mumbai’s weighted average price stood at Rs 10,100-10,300 per square foot, while Pune’s rates were around Rs 5,600-5,800 per square foot.
Mohit Jain, managing director, Krisumi Corporation said that property price rise was fuelled by a surge in construction costs and a strong revival in demand.
“Barring a few locations, the increase in prices has been meagre when compared to increase in cost of raw materials like steel, cement etc,” he adds.
