Housing prices in top 10 cities surge 88% in 5 years: PropEquity

The average price of new launch projects in India’s top 10 cities have surged 88% in the last five years, according to real estate data analytics firm PropEquity.

According to the report, the average housing price have surged the most in Gurugram from Rs 7500 psqft. in 2019 to Rs 19,500 psqft. in 2024, a jump of 160% and the lowest in Mumbai at 37% from Rs 25820 psqft to Rs 35,500 psqft.

During this period, 15,000 projects were launched comprising apartments, floors and villas in top 10 cities namely Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Thane, Navi Mumbai, Pune, Noida and Gurugram.

Commenting on the data, Samir Jasuja, Founder & CEO, PropEquity said: “Real estate prices have gone up exponentially across all major cities in the last 5 years. The massive infrastructure development, growing interest from NRIs, HNIs/UHNIs and stock market gainers looking to create wealth and generate income through real estate investment, rising homeownership sentiments and overall shift towards luxury/super luxury homes as a result of rising aspiration and affluence are the contributing factors for such a steep rise.”

According to the report, the highest rise in prices was seen in Gurugram, followed by Noida (146%), Bengaluru (98%), Hyderabad (81%), Chennai (80%), Pune (73%), Navi Mumbai (69%), Kolkata (68%), Thane (66%) and Mumbai (37%).

In terms of per sq. ft. prices, Mumbai continues to be the costliest with average price at Rs 35,500 psqft. followed by Gurugram at Rs 19,500 psqft. and Noida at Rs 16,000 psqft.

The data further highlighted that in 2019, only Mumbai had average price of new launch projects upwards of Rs 10,000 psqft. In 2024, except Hyderabad, Chennai and Kolkata, all seven cities saw average launch prices rise upwards of Rs 10,000 psqft.

Sanju Bhadana, MD, 4S Developers says,

Gurugram has today risen to become one of the costliest real estate markets in India. The city has been setting benchmarks in luxury and super luxury homes and is among the few cities that have seen price of homes double in the last 5 years. Post-pandemic, the Gurugram market has seen price escalation in all its micro-markets as demand swelled up from not just local inhabitants but also wealthy individuals from other parts of India and world. The coming years is expected to see a similar trend.

Shiwang Suraj, founder and director of Gurugram-based property consulting firm InfraMantra states

The housing market has seen remarkable growth over the past five years, with top cities experiencing an overall surge in prices. Gurugram leads the way with a staggering 160% increase, while Mumbai shows a steady rise of 37%. This trend reflects the strong demand from both investors and homebuyers, highlighting the attractiveness of these urban centers.

While there are discussions about the investor-driven nature of the market, this growth also signals confidence in the real estate sector's potential. As these cities evolve, there’s an opportunity for innovative solutions to ensure accessibility for homebuyers, fostering a vibrant and diverse housing landscape.

Srinivasan Gopalan, CEO,Arisinfra Solutions notes,

"In Q3, the real estate market faced challenges due to delayed project launches, the monsoon season, and the Shraad period, leading to a supply-demand imbalance. Despite this, strong demand from end users has driven a noticeable increase in sales from serious buyers. This upward momentum is anticipated to persist as the real estate sector continues to grow, fueled by rising corporate activity and an increasing need for quality housing. Significantly, there has been a shift in the market, with luxury and mid-segment homes priced at INR 3 crore and above seeing significant quarter-on-quarter sales growth. New supply fell below one lakh units for the first time since Q1 2023, while Q3 2024 sales outpaced launches, a highly positive sign."