The Indian real estate market has seen a massive surge in house prices post the COVID-19 pandemic. In the last five years, property rates have witnessed significant hikes in the country’s top cities, with some areas seeing prices rise as much as 88%. This sharp increase in property rates is a clear indicator of a booming real estate market, driven by several factors.
Where Have Prices Risen the Most?
According to a report by PropEquity, a real estate data analytics firm, Gurugram has seen the highest jump in house prices. Property rates there have skyrocketed by 160% in the last five years. In 2019, the average price per square foot in Gurugram was Rs. 7,500. By 2024, this figure will reach Rs. 19,500 per square foot. To put it in perspective, a 1,000 square foot home that would have cost Rs. 75 lakh in 2019 will now be priced at Rs. 2 crore in Gurugram.
Cities With Lesser Price Increase
While Gurugram has seen an unprecedented rise in prices, Mumbai, one of the country’s most expensive cities, has experienced the lowest percentage increase. The average house price in Mumbai was Rs. 25,820 per square foot in 2019. By 2024, this is expected to rise to Rs. 35,500 per square foot, marking a relatively modest increase of 37%.
Trends in Other Major Cities
After Gurugram, Noida saw the second-highest price surge at 146%, followed by Bengaluru at 98%. Other cities like Hyderabad, Chennai, and Pune also saw substantial increases, with rates going up by 81%, 80%, and 73% respectively. Meanwhile, cities like Navi Mumbai (69%), Kolkata (68%), and Thane (66%) have also seen considerable growth in property prices.
Which City Has the Most Expensive and Cheapest Property?
Mumbai continues to be the most expensive city in terms of real estate. The average house price here stands at Rs. 35,500 per square foot. In contrast, Noida, with an average price of Rs. 16,000 per square foot, offers the most affordable housing among the top cities.
New Project Launches Across Cities
During this period, around 15,000 new real estate projects were launched across major cities like Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Thane, Navi Mumbai, Pune, Noida, and Gurugram. These projects include apartments, villas, and floors, with fewer plots of land for sale.
Reasons Behind the Real Estate Boom
Several factors have contributed to this surge in real estate prices. According to Sameer Jasuja, Founder and CEO of PropEquity, the increase in property prices can be attributed to several key elements:
- Development of infrastructure in major cities
- Growing interest from Non-Resident Indians (NRIs)
- Increased real estate investment by High Net-Worth Individuals (HNIs) and Ultra HNIs
- The desire to own homes or invest in luxury and super-luxury properties
These factors have created strong demand in the real estate market, leading to rapid price growth across India’s top cities.
