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.

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