Property values across India’s top nine residential markets have seen tepid growth over the past five years, as a prolonged demand slowdown has kept value appreciation under check, says a report by digital real estate advisory firm PropTiger.com.
According to the report, property values in Hyderabad grew at a compound annual rate of 7% between March 2015 and March 2020—highest among the metro cities. Only Mumbai and Bengaluru saw any noteworthy rise of 2.8% and 2.1% CAGR, respectively. The Gurugram and Noida, on the other hand, saw a decline in property values during the period.
“An ongoing demand slowdown in India’s real estate market has kept price growth in check, as a result of which housing rates in most markets have shown only negligible growth,” says Dhruv Agarwala, group CEO, Housing.com, Makaan.com, and PropTiger.com. “If Hyderabad stands as an exception here, it has more to do with the fact that the base price in what is referred to as India’s pharmaceutical capital was quite low during 2015.”
On the other hand, Agarwala says, the moderate correction seen in the National Capital Region (NCR) is primarily because of “major delays in project completion by key developers.”
Founded in 2011, PropTiger.com has facilitated sales of over 30,000 homes worth nearly ₹20,000 crore.
In terms of absolute change, Hyderabad saw the average value of housing prices increase by 40% to ₹5,318 per sq. ft., in the period under review. In Mumbai, the average value rose 15% to ₹9,446 per sq. ft., while Bengaluru reported an 11% rise to ₹5,194 per sq. ft.
Housing prices in Gurugram fell 7% during the period, while the decline in Noida was 4%. “These two NCR markets have been at the receiving end of negative publicity because of large-scale project delays and instances of some mega players entering into insolvency resolution,” the report says.
