Residential Property Prices Plummet in Prime Micromarkets Across India
The prices of residential properties in some of the leading micromarkets of the country have fallen by up to nearly 50%, even as the cities they are a part of are experiencing healthy appreciation. According to the latest data by PropEquity, three out of five prime micro markets in top cities have seen a decline in their residential prices during the April-August period this year.
Experts attribute the fall to the shrinking size of the apartments as developers are opting for lower ticket prices compared to last year. “Now in many places, developers are launching smaller apartments than earlier,” said Amit Bagri, managing director and chief executive officer at Kotak Mahindra Investments, an NBFC of the Kotak Mahindra group. Bagri noted that sizes are five to 10% smaller now in new launches.
The upscale locality of Worli in Mumbai saw the steepest fall in launch prices at 45%, even as sales doubled to 200 units during April-August. This contrasts sharply with Mumbai, which saw a price growth of 8% and 7% respectively during Q2 and Q3 FY25, according to data collated by Knight Frank India.
Sector 63A of Golf Course Extension Road in Gurgaon, known for its luxury properties, saw prices declining by 36% while sales fell to one-third of the previous levels. In comparison, NCR saw prices increasing by 14% and 19% in the June quarter and September quarter of the year.
Kokapet in Hyderabad, known for its expensive apartments, saw prices coming down by 9%, while the city saw prices moving up by 11% and 13% in Q2 and Q3 of FY25 respectively.
In the case of the average apartment sizes in the top seven cities these micromarkets are part of, Anarock has reported a rise of 8% – from 1,420 sq ft in 2023 to 1,540 sq ft in 2024.
Anuranjan Mohnot, managing director and CEO of Lumos Equity Advisors, noted that there is a vast difference in property prices in posh localities such as Worli, which may indicate a correction. He emphasized that pricing is often based on the brand and not the location. A Godrej or Oberoi property will command higher prices than others in the same locality.
