Property prices increase by around 7 percent across top 8 cities: Report

An increase in the cost of construction has led to a rise in housing prices by an average of 7 percent across the top eight cities during 2022, a report by PropTiger.com has said.

Gurugram saw the maximum increase in average prices in 2022 at 13 percent. The rates were in the range of Rs 7,000 to Rs 7,200 per sq ft, followed by Bengaluru at 9 percent (Rs 6,000 to Rs 6,200 per sq ft) and Pune at 8 percent (Rs 5,500-Rs 5,700 per sq ft).

According to the data, the housing prices in Ahmedabad went up by an average of 7 percent year-on-year in 2022 to Rs 3,600-3,800 per square feet.

In Delhi NCR, the prices of residential properties rose 9 percent to Rs 4,800-5,000 per square feet. Among two major markets of Delhi-NCR, Gurugram saw a surge of 13 percent to Rs 7,000-7,200 per square feet while Noida witnessed a growth of 7 percent to Rs 5,400-5,600 per square feet, the report said.

Mumbai saw an increase of 5 percent in housing prices to Rs 10,100-10,300 per square feet.

"Housing prices remained by and large stable during the 2016-21 period. The year 2022 saw an appreciation in prices as the rates of key construction materials increased because of global headwinds like the Russia-Ukraine war. Strong revival in demand for both under-construction and ready-to-move-in units also played a role in the modest single-digit increase in prices," said Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com, Makaan.com

"With the increase in the overall construction cost, builders were forced to raise the basic selling price (BSP) of apartments," said Wadhawan.