Driven by strong housing demand, the residential property market in India experienced an average YoY price appreciation of 6% during the April-June period of this year, as per data released by PropTiger. The report titled ‘Real Insight Residential April-June 2023’ stated that the weighted average price of residential properties across eight major Indian cities reached Rs 7,000-7,200 per square foot during the period. This is a 6% increase compared to the corresponding period in the previous year.
The markets covered in the report include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune. “Housing prices have been climbing in major Indian cities in the post-Covid years. 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 increases,” said Vikas Wadhawan, Group CFO, REA India & Business Head at PropTiger.
Talking about specific market trends, Ankita Sood, Head of Research, REA India, said, “We are witnessing a surge in demand from business and large companies in Gurugram. 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. Gurugram saw a YoY weighted average property price increase of 12% in Q2 2023, surpassing Bengaluru (9%) and Noida (8%).
She added, “Surge in demand is driven by consumers seeking improved amenities and an enhanced lifestyle, migrating from conventional property formats in Delhi and neighbouring areas. Additionally, the limited supply has also contributed to the momentum in prices.”
According to the data, Ahmedabad experienced a 7% year-on-year increase in prices during the second quarter of 2023, reaching Rs 3,700-3,900 per square foot. Bengaluru witnessed a 9% increase, with prices averaging at Rs 6,300-6,500 per square foot. In Chennai, prices rose by 3% to Rs 5,800-6,000 per square foot. Delhi-NCR observed a 6% growth to Rs 4,800-5,000 per square foot. Meanwhile, Gurugram in the national capital region saw a 12% appreciation, with prices reaching Rs 7,000-7,200 per square foot, and Noida experienced an 8% rise to Rs 5,600-5,800 per square foot.
Hyderabad registered a 5% increase, with prices averaging at Rs 6,400-6,600 per square foot. Kolkata reported a 6% rise, with prices reaching Rs 4,600-4,800 per square foot. In Mumbai and Pune, both key property markets in Maharashtra, housing prices increased by 3% each. Mumbai’s weighted average price stood at Rs 10,100-10,300 per square foot, while Pune’s rates were at Rs 5,600-5,800 per square foot.
During the April-June period, housing sales across the eight major cities experienced an 8% annual increase to 80,250 units. The growth in sales can be attributed to increased demand especially in Mumbai and Pune. In the same period last year, sales stood at 74,320 units in the primary residential markets of the top eight cities.
Commenting on the report, Ishaan Singh, Director, AIPL Group, said, “This upward trend reflects the robust growth of the real estate market and highlights the enduring appeal of residential properties among buyers. As urbanization and population growth continue, the demand for quality housing is expected to persist, driving further price appreciation. It is an opportune time for both homebuyers and investors to explore the thriving real estate market in India.”
So far as Gurugram is concerned, it has experienced remarkable growth and development in recent years. The improved infrastructure and enhanced connectivity have played a vital role in attracting significant demand for both commercial and residential real estate in Gurugram. “As a result, property prices in the city have witnessed steady appreciation. With its strategic location and ongoing development, Gurugram continues to be a preferred destination for homebuyers and investors, offering a promising future in terms of real estate opportunities and value appreciation,” Singh added.
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