Increase in property prices in key micro-markets such as New Gurgaon, Noida Extension, and Dwarka Expressway has reportedly put Delhi-NCR on top of the list.
The Delhi National Capital Region (NCR) has experienced significant growth in residential property prices, driven by robust demand from end-users and heightened interest from investors. According to a joint study conducted by Housing.com and the Indian School of Business (ISB) released on December 23, the Housing Price Index (HPI) reached 178 during the period from June to September.
Significant appreciation in key micro-markets such as New Gurgaon, Noida Extension and Dwarka Expressway has put Delhi-NCR on top of the list, with Bengaluru recording 167 HPI in the same months.
HPI functions as a mechanism for monitoring fluctuations in residential property prices throughout 13 key markets in India.
As of September, the all-India HPI attained a value of 128, indicating a 2-point increase from the previous quarter. This demonstrates consistent appreciation in property values across significant residential centers.
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Other cities that have also demonstrated considerable growth in housing prices include Kolkata, which saw its index rise from 138 to 150 during the same timeframe.
The report further indicated that Kolkata is steadily enhancing its livability through advancements in infrastructure and connectivity. Despite the significant rise in prices, the city continues to be more affordable compared to other metropolitan areas, giving it a competitive advantage, particularly for individuals seeking homes after retirement.
“We see a significant variation in the trends in the overall Indian market. Over the past two years, the NCR region has experienced sharp price increases, accompanied by a significant slowdown in sales. In contrast, the Mumbai region has witnessed modest price growth alongside a robust increase in sales. While there are broader economic headwinds, India’s real estate sector is mature and well-positioned to withstand short-term turbulence,” stated Shekhar Tomar, Assistant Professor, Economics and Public Policy, ISB, as reported by the Hindustan Times.
The report also indicates that the ongoing demand for larger residences continues to be a significant trend in India’s real estate market. The popularity of 3BHK configurations persists, while 2BHK units are experiencing the most substantial increase in prices.
The all-India HPI index for 3BHK residences stands at 136 points, reflecting an increase of 5 points since June. In contrast, the 2BHK category experienced a more pronounced rise of 7 points, reaching a total of 133 points, according to the report.
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Conversely, the index for 1BHK homes saw a decline of six points, dropping from 122 in June to 116 in September. The report further noted that the proportion of 1BHK units in overall sales has been decreasing since the pandemic, as a growing number of individuals are choosing larger living spaces.
“As we progress, the real estate sector in India is expected to play a crucial role in the country’s economic landscape, presenting opportunities across residential, commercial, and emerging markets. With careful planning and alignment with consumer preferences, the market is well-positioned to maintain its growth trajectory while adjusting to new circumstances,” stated Amit Masaldan, chief revenue officer of Housing.com.
