Delhi-NCR Housing Prices Surge 57% in Jul-Sep: PropTiger

New Delhi, Oct 28 (PTI) Average housing prices across top eight cities rose in a range of 7 per cent to 57 per cent during the July-September period, with Delhi-NCR witnessing maximum appreciation and Hyderabad the lowest, according to PropTiger.

Real estate consultant PropTiger data showed that the average housing prices in Delhi-NCR grew 57 per cent to Rs 8,017 per square feet during July-September from Rs 5,105 per square feet in the year-ago period.

In Hyderabad, there was a modest appreciation of 7 per cent in the average housing prices to Rs 7,050 per square feet from Rs 6,580 per square feet.

PropTiger attributed this price appreciation to rising demand, especially for high-end properties.

"The fact that the Reserve Bank has maintained a status quo on the repo rate at 6.5 per cent in the past 10 policy meetings is adding further pressure on pricing. In the absence of a rate cut, developers as well as buyers continue to pay a comparatively high interest on loans, which ultimately impacts housing affordability," the report said.

As per the data, the prices in Ahmedabad increased 21 per cent to Rs 4,736 per square feet in July-September from Rs 3,900 per square feet in the year-ago period.

Bengaluru saw a 15 per cent increase in prices to Rs 7,512 from Rs 6,550 per square feet.

Housing prices in Chennai grew 22 per cent to Rs 7,179 from Rs 5,885 per square feet, while in Kolkata the rates rose 22 per cent to Rs 5,844 against Rs 4,797 per square feet.

Mumbai witnessed a 21 per cent increase in prices to Rs 12,590 over Rs 10,406 per square feet.

Pune saw an 18 per cent rise in the average prices to Rs 6,953 per square feet during July-September this year from Rs 5,892 per square feet in the year-ago period.

Commenting on the price trend, Harinder Dhillon, Senior Vice President Sales of BPTP, said the "consistent rise in property values underscores the resilience and growth potential of the Indian residential real estate market."

He said the rates have increased in key markets of Delhi-NCR like Gurugram and Faridabad, where demand for quality residential projects has propelled prices upwards.

"As these regions evolve with enhanced infrastructure, connectivity, and lifestyle amenities, they offer compelling investment opportunities for homebuyers and investors alike," Dhillon said.

Angad Bedi, CMD of BCD Group, said the drop in launches and sales of housing units in Southern states in the July to September quarter is an indication of a market correction.

"This is a stimulus-response to rising prices and is a move triggered by market forces to maintain demand-supply balance and in order to avoid a high level of unsold inventory," he added.

Bhavesh Kothari, Founder & CEO of Property First, said the demand in residential real estate segment is cyclical.

He said there was a drop in launches and sales in the July to September quarter as buyers stayed away from the market and developers refrained from launching new properties to maintain healthy levels of inventory without impacting the prices which are already inching higher.