Housing Prices in Top 10 Cities Soar 88% in Five Years; Gurugram Leads with 160% Increase
Housing prices in the top 10 cities have surged by 88% over the past five years, with Gurugram leading the pack at a staggering 160% increase. Real estate prices have climbed exponentially due to infrastructure development, NRI interest, and a shift towar
Housing PricesReal EstateGurugramTop 10 CitiesIndiaReal Estate PuneOct 14, 2024
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.'
Frequently Asked Questions
Which city has seen the highest increase in housing prices over the past five years?
Gurugram has seen the highest increase in housing prices, with a 160% rise from ₹7,500 per sq ft in 2019 to ₹19,500 per sq ft in 2024.
What factors are contributing to the rise in real estate prices?
The rise in real estate prices is driven by massive infrastructure development, growing interest from NRIs and HNIs, and a shift towards luxury and super luxury homes due to rising aspirations and affluence.
How many new projects were launched in the top 10 cities over the past five years?
15,000 new projects were launched in the top 10 cities over the past five years, comprising apartments, floors, and villas.
Which city is the most expensive real estate market?
Mumbai is the most expensive real estate market, with an average price of ₹35,500 per sq ft.
What has been the impact of the supply-demand imbalance in the third quarter of 2024?
Despite challenges such as delayed project launches and the monsoon season, the real estate market has shown strong demand from end users, with luxury and mid-segment homes priced at ₹3 crore and above seeing significant sales growth.
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