Gurugram Leads Housing Price Surge; Mumbai Lags - A Deep Dive
The average price of new housing projects in India's top 10 cities has skyrocketed by 88% in the last five years. Gurugram has seen the maximum increase, while Mumbai has the lowest surge. Here’s a detailed analysis.
Real EstateHousing PricesGurugramMumbaiPropequityReal Estate PuneOct 15, 2024
Gurugram The Pinnacle of GrowthGurugram, a bustling city in Haryana, has experienced the most significant price increase. From Rs 7,500 per square foot in 2019, the average price has jumped to Rs 19,500 per square foot in 2024, marking a substantial 160% increase. This phenomenal growth can be attributed to several factors, including - Massive Infrastructure Development The city has seen the construction of numerous roads, metro extensions, and commercial complexes, making it an attractive destination for both residents and investors.- Growing Interest from NRIs and HNIs The city's economic prosperity has attracted many Non-Resident Indians (NRIs) and High Net Worth Individuals (HNIs) looking to invest in real estate.- Rising Aspirations and Affluence The overall shift towards luxury and super-luxury homes has further driven prices up.
Mumbai The Lagging MetropolisOn the other hand, Mumbai, one of India's most expensive cities, has seen a relatively modest 37% increase in housing prices. While the average price per square foot has risen from Rs 25,820 in 2019 to Rs 35,500 in 2024, this growth is the lowest among the top 10 cities. Despite being the costliest city, with an average price of Rs 35,500 per square foot, Mumbai's slower growth can be attributed to - High Baseline Prices The city's already high property values leave less room for substantial growth.- Regulatory Challenges Stringent regulations and slower approval processes can hinder new projects and keep prices stable.
Other Cities in Focus- Noida The city has seen a 146% increase in housing prices, making it the second-fastest-growing market.- Bengaluru With a 98% increase, Bengaluru continues to be a popular destination for real estate investments, driven by its tech-savvy population and vibrant economy.- Hyderabad The city has witnessed an 81% increase in housing prices, reflecting its growing importance in the IT and healthcare sectors.- Chennai Housing prices in Chennai have risen by 80%, driven by the city's robust manufacturing and services sectors.- Pune With a 73% increase, Pune is another city that has seen significant growth, driven by its educational and industrial hubs.- Navi Mumbai The city has experienced a 69% increase in housing prices, making it an attractive alternative to Mumbai.- Kolkata The city has seen a 68% increase in housing prices, reflecting its economic resurgence and improved infrastructure.- Thane With a 66% increase, Thane continues to be a preferred location for affordable housing in the Mumbai metropolitan region.
Key Findings- Overall Growth Out of the 15,000 new projects launched in the top 10 cities, housing prices have risen across the board, with a notable increase in luxury and super-luxury segments.- Price Thresholds In 2019, only Mumbai had an average price of new launch projects above Rs 10,000 per square foot. By 2024, all cities except Hyderabad, Chennai, and Kolkata have surpassed this threshold.- Investor Sentiment The growing interest in real estate as a means to generate wealth and income has been a key driver of price increases.
Expert InsightsSamir Jasuja, Founder & CEO of PropEquity, commented on the data, stating, “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 aspirations and affluence are the contributing factors for such a steep rise.”
PropEquity is a leading real estate data analytics firm that provides comprehensive insights into the Indian property market. The firm's data-driven approach helps investors, developers, and policymakers make informed decisions.
Frequently Asked Questions
Which city has seen the highest increase in housing prices in the past five years?
Gurugram has seen the highest increase in housing prices, with a 160% surge from Rs 7,500 per square foot in 2019 to Rs 19,500 per square foot in 2024.
What are the key factors driving the surge in housing prices in Gurugram?
The surge in housing prices in Gurugram is driven by massive infrastructure development, growing interest from NRIs and HNIs, and a shift towards luxury and super-luxury homes.
Why has Mumbai seen the lowest increase in housing prices?
Mumbai has the lowest increase in housing prices due to its already high baseline prices and stringent regulatory challenges, which can hinder new projects and keep prices stable.
How many new projects were launched in the top 10 cities over the last five years?
A total of 15,000 new projects were launched in the top 10 cities over the last five years, comprising apartments, floors, and villas.
What is the average price per square foot in Mumbai as of 2024?
The average price per square foot in Mumbai as of 2024 is Rs 35,500, making it the costliest city among the top 10.
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