Property Prices Surge Across India’s Prime Markets, Delhi-NCR Leads with 57% Increase

National / October 24, 2024: Property prices in India’s eight prime residential markets firmed up further in the past one year amid a spike in the cost of construction, PropTiger.com said based on data available with the company.  

In a recent report by PropTiger.com, a subsidiary of REA India, which also owns Housing.com, it was observed that average property prices in most cities analysed experienced double-digit growth in the third quarter of 2024 (Q3CY2024) compared to the same period last year. The report, titled ‘Real Insight Residential: July-September 2024,’ attributes this price appreciation to rising demand, especially for high-end properties, PropTiger.com said in a statement. 

“The fact that the Reserve Bank has maintained a status quo on the repo rate at 6.5% in the past 10 policy meetings is adding further pressure on pricing. In the absence of a rate cut, developers as well as buyers continue to pay a comparatively high interest on loans, which ultimately impacts housing affordability,” the report said.

The report underlined a consistent annual growth in property prices for new supply and available inventory across the top eight cities. This sustained growth demonstrates the real estate sector’s resilience and adaptability in the face of evolving market conditions, it said.

According to the report, the highest annual jump in prices was seen in the Delhi-NCR property market, with a staggering 57% increase, the statement added.

Vikas Wadhawan, CFO, REA India & Business Head, PropTiger.com, said: “While we’ve observed significant price increases, especially in the prime localities of metro and mini metros, it’s crucial to view these developments through a wider lens of India’s economic growth trajectory and urbanisation patterns. The current market dynamics, characterised by a nuanced demand-supply equation, are creating a more stable and sustainable environment for long-term growth. This stability is particularly beneficial for end-users and serious investors. As we navigate through this phase, we anticipate a gradual alignment of buyer expectations with the new price realities.”

“Looking ahead, the real estate sector is poised to play a pivotal role in India’s economic narrative, driven by factors such as infrastructure development, smart city initiatives, and the growing prominence of tier-2 and tier-3 cities. The long-term outlook for Indian real estate remains robust, offering diverse opportunities across residential, commercial, and emerging asset classes for those who approach the market with a strategic, forward-looking perspective,” Wadhawan added.

The report offers a comprehensive view of current market conditions and valuable insights for prospective homebuyers, sellers, and investors navigating India’s dynamic real estate landscape. As the market continues to evolve, these insights will be crucial for stakeholders making informed decisions in the property sector.