* All-India HPI reached 128 in September, marking a 2-point quarter-on-quarter increase; 2BHK units saw sharpest price growth QoQ, followed by 3BHK homes
Property values in India’s National Capital Region (NCR) have shown significant increase in a rather short time span as the country’s rich continue to pour millions in this highly promising residential market, inspired by lifestyle aspirations. According to the latest findings of the Housing Price Index (HPI), a leading indicator of price trends in India’s key realty markets, the NCR, with an HPI reading of 178, has outperformed its peers, primarily driven by strong end-user demand, investor interest and significant value appreciation in key micro-markets such as New Gurgaon, Noida Extension and Dwarka Expressway.
Developed jointly by leading real estate app Housing.com and global business school Indian School of Business (ISB), the HPI serves as a tool that tracks changes in residential home prices across India's 13 major markets.
All-India HPI moves 2 points up in Sept; Bengaluru, Kolkata show 12-point jump
The All-India HPI reached 128 in September, marking a 2-point quarter-on-quarter increase, reflecting steady growth in property values across major residential hubs. These findings reaffirm the strength of India’s residential real estate market, as it navigates global and domestic challenges while responding to evolving buyer needs, the report notes.
Other cities that have displayed significant improvement in price growth include Bengaluru and Kolkata. Demand-driven growth in micro-markets such as Varthur and Devanahalli triggered value growth in India’s IT capital: the city saw its reading jump 12 points, from 155 to 167, from June to September. The reading for Kolkata showed a similar jump, from 138 to 150 in the same period.
“With an improvement in infrastructure and connectivity, Kolkata is gradually showing improvements in terms of liveability. Despite a sharp price rise, the city remains more affordable than other metros, providing it a certain edge, especially to people looking for post-retirement homes,” says the report.
‘Rising property values reflect a stable, maturing market’
Mr. Amit Masaldan, Chief Revenue Officer, Housing.com, said: “Delhi-NCR's remarkable performance in the Housing Price Index is a testament to the region's strong fundamentals, underpinned by robust demand and strategic developments in key micro-markets. This growth aligns with India’s broader real estate trajectory, where rising property values reflect a stable and maturing market. Despite affordability challenges, end-users and investors are demonstrating confidence, driven by the promise of long-term value creation.”
“India’s real estate sector continues to evolve, shaped by transformative infrastructure projects, urbanisation trends, and growing aspirations for larger homes. As we move forward, the sector is poised to contribute significantly to India’s economic narrative, offering opportunities across residential, commercial, and emerging segments. With strategic planning and alignment to buyer preferences, the market is set to sustain its growth momentum while adapting to the new realities,” Mr. Masaldan added.
“We see a significant variation in the trends in the overall Indian market. Over the past two years, the NCR region has experienced sharp price increases, accompanied by a significant slowdown in sales. In contrast, the Mumbai region has witnessed modest price growth alongside a robust increase in sales. While there are broader economic headwinds, India’s real estate sector is mature and well-positioned to withstand short-term turbulence,” said Mr Shekhar Tomar, Assistant Professor, Economics and Public Policy, ISB.
Demand pushes price growth for larger homes
According to the report, a sustained preference for larger homes remains a defining trend for India’s real estate sector, with 3BHK configurations maintaining their appeal and 2BHK units witnessing the sharpest price growth.
While the all-India HPI reading for 3BHK homes remains the highest at 136 points, leaping 5 points since June, 2BHK configuration recorded a slightly sharper jump of 7 points to settle at 133 points, the report said.
“The reading for 1BHK homes showed a 6-point drop, from 122 in June to 116 in September. The share of this configuration in overall sales has been declining post-pandemic as more and more people opt for larger homes,” says the report.
The September HPI findings reiterate the strength and resilience of India’s real estate sector. Delhi-NCR’s standout performance, combined with broader national trends, reflects a market adapting to evolving demands and economic conditions. As infrastructure initiatives and urbanisation efforts continue to expand, the Indian housing market is well-positioned for sustained growth, offering immense potential for buyers, investors and developers alike.
No comments:
Post a Comment