The average price per square foot in cities like Ahmedabad, Bengaluru, Delhi-NCR, Kolkata and Pune has witnessed a significant increase. (Representative image)
Housing prices in India: Biggest 10% rise in residential property prices was recorded in Bangalore, followed by Pune and Ahmedabad, report says
House prices in India have risen sharply recently, with the average price increase from January to March 2023 across all major property markets in the country being almost 7% compared to last year, according to a report by PropTiger.com . The largest increase of 10% in residential property prices was recorded in Bangalore, followed by Pune, Ahmedabad and Delhi-NCR.
According to the report, all major real estate markets in India showed upward movement in average new home rates. The average price per square foot in cities like Ahmedabad, Bengaluru, Delhi-NCR, Kolkata and Pune has witnessed a significant increase.
The average property rate in Bengaluru has seen an appreciation of 10% over the past year, making it the market with the strongest upward trend in property prices. Pune and Ahmedabad followed this southern market closely in terms of price increases, with these markets registering an increase of 8% and 7% in their average property rates respectively.
Housing prices have increased due to several factors, including the continued increase in the cost of raw materials and labor, the growing demand for housing post-COVID and the cessation of government-funded subsidy programs in March this year, according to the report.
Vikas Wadhawan, Group CFO of PropTiger.com, Housing.com and Makaan.com, said: “Real estate has historically been one of the best performing asset classes over the long term, and with prices set to rise again, it could be a good time for bums to take the plunge and buy their dream home.”
He also said to keep in mind that buying a home is the most expensive buying decision a family typically makes. It is therefore important to carefully weigh the pros and cons before making a final decision.
Ankita Sood, Head (Research) at PropTiger.com, Housing.com and Makaan.com, said: “Property prices in Indian cities have increased at a rapid rate of 6-7% since last year. with a renewed push on home ownership. Along with an increase in input costs, the limited supply of the right product and ready-to-move-in projects for the end user has resulted in higher prices.”
Sood added that while weighted average prices increased by 6% YoY, in the March 2023 quarter, key micro markets of Gurugram, followed by Bengaluru, saw YoY growth of 13% and 10 %, respectively.
“Given current market trends of supply and demand mismatches, we expect property prices to continue to rise, albeit within a close range, where the lending segment to move in will be traded at a premium,” she said.
Read all the latest business news, tax news and stock market updates here