Sharp Rise in Property Prices Across Prime Residential Markets in 2024: PropTiger Report
Amid rising costs of building materials and labor, a new report by PropTiger.com reveals a significant increase in property prices across major cities in India, with Delhi NCR leading the pack.
Property PricesReal EstateDelhi NcrLuxury HomesProptigercomReal Estate PuneJan 29, 2025
January 29th, 2025 Property values in India’s national capital region, Delhi NCR, have surged by a remarkable 49% in the past year, driven by sustained demand for luxury homes.
This upward trend is highlighted in a new report by the digital real estate transaction and advisory platform, PropTiger.com.
The report, titled 'Real Insight Residential Annual Round-up 2024,' indicates that property prices have risen in all cities analyzed, though the growth rates vary significantly.
While the southern city of Hyderabad saw a slowdown in price appreciation, other urban centers recorded double-digit increases.
Price Trends Across Key Cities
Here's a breakdown of the year-over-year (YoY) price changes in various cities
| City | Q4 23 | Q4 24 | YoY ||------------|-------|-------|------|| Ahmedabad | 4,000 | 4,402 | 10% || Bengaluru | 6,744 | 7,536 | 12% || Chennai | 6,200 | 7,173 | 16% || Delhi NCR | 5,445 | 8,105 | 49% || Hyderabad | 6,842 | 7,053 | 3% || Kolkata | 5,100 | 5,633 | 10% || MMR | 10,712| 12,600| 18% || Pune | 6,140 | 7,108 | 16% |
Source Real Insight Residential – Annual Round-up 2024, Housing Research
The cities covered in the report include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), Mumbai Metropolitan Region (Mumbai, Navi Mumbai, and Thane), and Pune.
Factors Driving the Surge in Delhi NCR
The primary driver of the price surge in Delhi NCR is the influx of high-net-worth individuals (HNWIs) who are deploying capital in the region.
With over 10 recently-listed start-ups, the area has become a hub for premium residential properties.
Key locations like Gurugram, Greater Noida, and Noida have seen significant sales growth
- Gurugram 144% increase YoY- Greater Noida 54% increase YoY- Noida 3% increase YoY
Despite a 26% year-on-year dip in pan-India home sales, these regions have maintained their momentum.
Developers are prioritizing premium offerings, catering to the affluent segment of the market.
Mumbai's Property Market
India’s financial capital, Mumbai, also witnessed an average 18% YoY increase in property prices.
The city, home to India’s leading business leaders, Bollywood stars, and sports celebrities, continues to be the most unaffordable housing market in the country.
Challenges and Policy Recommendations
While the rising property prices indicate strong demand and positive buyer sentiment, they pose affordability challenges.
Dhruv Agarwala, Group CEO of Housing.com & PropTiger.com, noted, “This kind of price growth is indicative of underlying demand and growth prospects.
However, cost pressures might further affordability concerns in a country where a large part of the population relies on government subsidies for house purchases.
Amid hardening inflation and slowing growth, the government must launch policy measures to promote affordable housing.
Positive tweaks in taxation laws in the upcoming Budget and rate cuts by the RBI could go a long way in ensuring greater affordability for India’s burgeoning middle class.”
About PropTiger.com
PropTiger.com is a leading digital real estate transaction and advisory platform in India.
It provides comprehensive real estate data, insights, and services to help consumers and businesses navigate the property market.
Frequently Asked Questions
Which city saw the highest increase in property prices in 2024?
Delhi NCR saw the highest increase in property prices, with a 49% year-over-year appreciation.
What factors are driving the surge in property prices in Delhi NCR?
The surge in property prices in Delhi NCR is primarily driven by the influx of high-net-worth individuals (HNWIs) and the presence of over 10 recently-listed start-ups, making it a hub for premium residential properties.
How did the southern city of Hyderabad fare in terms of property price growth?
Hyderabad saw a slowdown in property price growth, with only a 3% year-over-year increase after nearly a decade of sharp rises.
What challenges do rising property prices pose in India?
Rising property prices pose affordability challenges, especially for the middle class, who rely heavily on government subsidies for house purchases. This can lead to further cost pressures and inequality.
What policy recommendations does PropTiger.com suggest to promote affordable housing?
PropTiger.com suggests positive tweaks in taxation laws in the upcoming Budget and rate cuts by the RBI to ensure greater affordability for India’s middle class.
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