India’s prime residential markets see growth, except Hyderabad

According to a report released by PropTiger.com on Thursday, the price rally across the top eight residential markets continued in Q3 2024 and property prices firmed up further in the past one year amid a spike in the cost of construction

Hyderabad: Except Hyderabad, the property prices in India’s prime residential markets registered an annual growth in double digits in the third quarter of year 2024.

According to a report released by PropTiger.com on Thursday, the price rally across the top eight residential markets continued in Q3 2024 and property prices firmed up further in the past one year amid a spike in the cost of construction.

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In its report, PropTiger.com, a subsidiary of REA India, which also owns Housing.com, observed that average property prices in most cities analysed experienced double-digit growth in the third quarter of 2024 (Q3CY2024) compared to the same period last year.

The report, titled ‘Real Insight Residential: July-September 2024,’ attributes this price appreciation to rising demand, especially for high-end properties. While Delhi-NCR saw the highest annual jump in rates at 57 per cent, Hyderabad ranked the lowest with a mere 7 per cent.

According to the report, the western cities of Ahmedabad and Mumbai, along with the southern tech hub of Bengaluru, all experienced healthy price appreciation in the 15-21% range whereas Chennai in south and Kolkata in east saw robust growth of 22% compared to the previous year.

Pune, often seen as a more affordable alternative to Mumbai, also saw an 18% increase. However, Hyderabad, known for its IT sector, showed the most modest growth at 7%, which the PropTiger said, indicated a more stable and mature market.

Vikas Wadhawan, CFO, REA India & Business Head, PropTiger.com, said: “While we’ve observed significant price increases, especially in the prime localities of metro and mini metros, it’s crucial to view these developments through a wider lens of India’s economic growth trajectory and urbanisation patterns.”

 

Price Insights (Rs/sft)

City Q3 24 Q3 YoY (%)

• Delhi NCR-  8,017 5,105 57
• Chennai- 7,179 5,885 22
• Kolkata-  5,844 4,797 22
• Ahmedabad – 4,736 3,900 21
• Hyderabad – 7,050 6,580 8