Indian Residential Property Market Sees Steady Growth Post 2019 Elections

The Indian residential property market has witnessed a significant surge in prices, with a 6% annual growth rate, following the 2019 elections. Cities like Pune, Hyderabad, and others have seen a notable increase in property prices, suggesting a link betw

Indian Real EstateResidential PropertyProperty PricesElection CyclesEconomic OptimismReal Estate PuneJun 20, 2024

Indian Residential Property Market Sees Steady Growth Post 2019 Elections

Real Estate Pune:The Indian residential property market has been on a steady growth trajectory since the 2019 elections. According to data from Anarock, a leading real estate consultancy, average property prices across the top seven Indian cities have grown at a compound annual growth rate (CAGR) of 6% since then. This translates to a significant price increase, with prices rising from INR 5,600 per square foot in June 2019 to INR 7,550 per square foot by the end of March 2024.\r\n\r\nInterestingly, this growth trend appears to be linked to election cycles. Anarock observed a similar pattern following the 2014 elections, with average prices rising by over 6% annually between 2013 and 2014. This suggests a potential connection between economic optimism and real estate investment decisions during these periods.\r\n\r\nPrior to the pandemic, the Indian real estate market experienced a period of balanced growth. Looking back at the period between 2013 and 2020, the supply of new housing units in the top seven cities largely matched demand, leading to stable price increases that kept pace with inflation. In fact, the total supply of new units even slightly outweighed demand. This resulted in a peak available inventory of around 8 lakh units by the end of 2016.\r\n\r\nHowever, the COVID-19 pandemic significantly impacted the market. Following the initial shock, the residential real estate sector witnessed a rapid recovery. This surge in demand, coupled with a limited supply of new units due to pandemic disruptions, has driven prices upwards at a rate exceeding general inflation.\r\n\r\nThis trend highlights the potential of the Indian real estate market for long-term investment. While economic cycles and government policies can influence short-term fluctuations, the long-term demand for housing in major cities remains strong. This, combined with a potential post-pandemic construction boom to meet the increased demand, suggests the market could offer continued growth opportunities for investors.\r\n\r\n Information Anarock is a leading real estate consultancy that provides expert insights and data-driven research on the Indian real estate market.

Frequently Asked Questions

What has been the growth rate of residential property prices in India since 2019?

The average residential property prices in India have grown at a compound annual growth rate (CAGR) of 6% since 2019.

Which cities have seen a notable increase in property prices?

Cities like Pune, Hyderabad, and others have seen a notable increase in property prices.

What was the peak available inventory of new housing units in 2016?

The peak available inventory of new housing units reached around 8 lakh units in 2016.

How has the COVID-19 pandemic affected the Indian real estate market?

The pandemic significantly impacted the market, leading to a rapid recovery and a surge in demand, which has driven prices upwards.

What are the long-term investment prospects in the Indian real estate market?

The market could offer continued growth opportunities for investors, driven by long-term demand for housing in major cities and a potential post-pandemic construction boom.

Tags:

Related News Articles

real estate news

Somany Ceramics Reports 41.28% Drop in Q2 FY25 Net Profit

The demand for ceramics has been sluggish, and a decline in exports has further strained the domestic market, leading to a significant drop in Somany Ceramics' net profit during the second quarter of the fiscal year 2025.

October 29, 2024

Read Article

real estate news

Fire Safety Takes Centre Stage: DERC Proposes NOC for Taller Buildings in Delhi

Delhi Electricity Regulatory Commission (DERC) proposes fire safety NOC for residential buildings over 15 meters high, Authorized discoms to disconnect power supply of buildings to be demolished by civic agencies

July 7, 2024

Read Article

Real Estate Mumbai

Delhi NCR Sees 66% Surge in Housing Sales: PropEquity's Latest Insights

PropEquity, a leading real estate analytics firm, reports a 66% surge in housing sales in the Delhi NCR region, outpacing cities like Mumbai in the ultra-luxury market. This growth is driven by a combination of economic stability, improved infrastructure,

March 18, 2025

Read Article

Real Estate Maharashtra

Maharashtra Aims for $1 Trillion Economy by 2030: Devendra Fadnavis at GWS 2025

Chief Minister Devendra Fadnavis outlines ambitious plans to transform Maharashtra into a $1 trillion economy by 2030, emphasizing infrastructure, real estate, and industrial growth.

March 7, 2025

Read Article

real estate news

Shapoorji Pallonji Real Estate and Kanodia Join Forces to Develop 1.74 Acre Luxury Project

Shapoorji Pallonji Real Estate and Kanodia have partnered to develop a luxurious 1.74-acre project, setting new benchmarks in the real estate industry.

October 15, 2024

Read Article

real estate news

Hyderabad Housing Market Witnessing 20% Sales Surge in 2024

The housing market in Hyderabad has experienced a 20% increase in sales value during the third quarter of 2024, fueled by a robust demand for mid-to-high priced properties, particularly in the city's prime locations.

November 13, 2024

Read Article