Housing prices in India climbed by an average of 7 percent across all major markets during the first quarter of calendar 2023, according to real estate consultant PropTiger.
The average price per square foot climbed in Ahmedabad, Bengaluru, the National Capital Region including New Delhi, Kolkata, and Pune, according to the report.
Mumbai topped the list, with the average housing price rising about 5 percent to Rs 10,200-10,400 per sq. ft in Q1 of 2023. Bengaluru and Hyderabad followed at Rs 6,200-6,400 per sq. ft. In the NCR, the average price was Rs 4,700-4,900 per sq. ft.
"The cost of buying a house in India continues to rise due to several factors, including the continuous rise in the cost of raw materials and labour, the growing demand for homes post-COVID, and the cessation of government-funded subsidy schemes in March this year," PropTiger said in the report.
While weighted average prices have grown by 6 percent YoY in the March quarter, key micro-markets in Gurugram and Bengaluru have seen growth of 13 percent and 10 percent, respectively, said Ankita Sood, head of research at PropTiger.com, Housing.com and Makaan.com.
“Given the current market trends of demand-supply mismatch, we expect property prices to continue to rise, albeit within a close range, where the quality ready-to-move-in segment will trade at a premium," Sood added.
Vikas Wadhawan, group CFO of PropTiger.com, Housing.com and Makaan.com, said real estate has consistently been one of the best-performing asset classes over the long term, and with prices expected to go up further, it might be a good time for fence-sitters to buy their dream home.
"Having said that, one needs to keep in mind that buying a home is the most expensive purchase decision a family typically makes. So, it is important to weigh all the pros and cons carefully before making a final decision," he said.
According to the report, Bengaluru's average property rate rose 10 percent in the previous year, making it the city with the sharpest increase in property prices. Pune and Ahmedabad were close behind, with an 8 percent and 7 percent rise in their average property rates, respectively.
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