Real Estate Pune
Housing Prices in Top 10 Cities Soar 88% in Five Years; Gurugram Leads with 160% Increase
By GeoSquare News Desk · Published 2024-10-14
Housing prices in India's top 10 cities have seen a significant surge of 88% over the last five years, with Gurugram leading the way with a 160% increase, according to data from PropEquity, a real estate data analytics firm. This exponential rise in prices is attributed to several factors, including massive infrastructure development, growing interest from NRIs (Non-Resident Indians), HNIs (High Net Worth Individuals), and UHNIs (Ultra High Net Worth Individuals), as well as an increasing demand for luxury and super luxury homes.
In Gurugram, the average housing price has jumped from ₹7,500 per sq ft in 2019 to ₹19,500 per sq ft in 2024. This significant increase is followed by Noida, which saw a 146% rise, Bengaluru at 98%, Hyderabad at 81%, Chennai at 80%, Pune at 73%, Navi Mumbai at 69%, Kolkata at 68%, Thane at 66%, and Mumbai at 37%.
During this period, 15,000 new projects were launched across these cities, comprising apartments, floors, and villas. In 2019, only Mumbai commanded an average price of new launch projects above ₹10,000 per sq ft. By 2024, all seven cities except Hyderabad, Chennai, and Kolkata saw average launch prices rise above ₹10,000 per sq ft.
Mumbai continues to be the most expensive real estate market, with an average price of ₹35,500 per sq ft, followed by Gurugram at ₹19,500 per sq ft and Noida at ₹16,000 per sq ft. The steep rise in real estate prices is driven by various factors, including the completion of key infrastructure projects, the rising interest from wealthy individuals and NRIs, and a growing trend towards luxury and super luxury homes.
According to Samir Jasuja, founder and CEO of PropEquity, 'Real estate prices have gone up exponentially across all major cities in the last five 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 aspiration and affluence are the contributing factors for such a steep rise.'
Despite challenges in the third quarter of 2024, such as delayed project launches and the monsoon season, the real estate market has shown strong demand from end users. Srinivasan Gopalan, CEO of Arisinfra Solutions Ltd, noted, 'This upward momentum is anticipated to persist as the real estate sector continues to grow, fueled by rising corporate activity and an increasing need for quality housing. Significantly, there has been a shift in the market, with luxury and mid-segment homes priced at ₹3 crore and above seeing significant quarter-on-quarter sales growth. New supply fell below one lakh units for the first time since Q1 2023, while Q3 2024 sales outpaced launches, a highly positive sign.'