Home prices are up over 30% in at least three Indian cities — check details

The national capital region around Delhi, which includes Gurugram and Noida, aside from Bengaluru and Kolkata have seen the sharpest rise in property prices, over 30% each, in the last two years. The report attributes the price rise to benign interest rates, good economic growth and attractive prices.

The demand is the most in the relatively higher-priced homes in the mid-segment and luxury properties.

Part of the price rise is also due to the rising construction cost.

Parts of Bengaluru with a high concentration of tech firms, like

Whitefield, KR Puram, and Sarjapur have seen nearly 50-60% in home prices despite the doubling of supply from new launches in 2023 compared to 2021.

A similar trend was visible in Chennai, Pune and the national capital region (NCR), where the demand for properties outpaced the new launches.

Unsold home inventory in Delhi NCR dropped 19% in the last two years.

In the Mumbai Metropolitan Region (MMR), the most expensive residential market, housing prices saw a steady 2% increase in 2023 compared to 2021.

Property prices in the country's financial capital have seen sluggish growth since the end of the pandemic; except in some categories.

However, some areas like Panvel have seen a notable 20% rise in the last two years. The analysts attribute this surge to the development of infrastructure projects like the Mumbai Trans Harbour Link (MTHL) and the essential metro lines.

Other analysts, like the ones at consulting firm Knight Frank, believe that MTHL will have minimal impact on real estate prices in the near term.

"We expect both – housing demand and supply – to thrust forward in 2024 not only in top 8 cities but in Tier II, III regions as well," said Boman Irani, President of CREDAI National.