Driven by strong end-user demand and investor interest, the Delhi National Capital Region (NCR) has shown significant appreciation in residential prices with a Housing Price Index (HPI) of 178 between June to September, a joint study by Housing.com and the Indian School of Business (ISB) on December 23 showed.
Substantial appreciation in key micro-markets such as New Gurgaon, Noida Extension and Dwarka Expressway has put Delhi-NCR on top of the list, with Bengaluru clocking 167 HPI in the same period.
HPI serves as a tool that tracks changes in residential home prices across India’s 13 major markets.
The all-India HPI reached 128 in September, marking a 2-point quarter-on-quarter increase. This reflects steady growth in property values across major residential hubs.
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Kolkata showed significant appreciation in housing prices
Other cities that have displayed significant improvement in price growth include Kolkata. The reading for Kolkata showed a jump, from 138 to 150 in the same period.
The report added that Kolkata is gradually improving its liveability due to improved infrastructure and connectivity. Despite a sharp price rise, the city remains more affordable than other metros, providing it with an edge, especially for people looking for post-retirement homes.
โWe 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, Indiaโs real estate sector is mature and well-positioned to withstand short-term turbulence,โ Shekhar Tomar, Assistant Professor, Economics and Public Policy, ISB said.
Also Read: Did Delhi-NCR overtake Mumbai in the ultra-luxury residential segment?
Demand pushes price growth for larger homes
According to the report, a sustained preference for larger homes remains a defining trend for Indiaโs 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 dropped six points from 122 in June to 116 in September. The report added that the share of this configuration in overall sales has been declining post-pandemic as more people opt for larger homes.
“As we move forward, India’s real estate sector is poised to contribute significantly to Indiaโs economic narrative, offering opportunities across residential, commercial, and emerging segments. With strategic planning and alignment with buyer preferences, the market is set to sustain its growth momentum while adapting to the new realities,” Amit Masaldan, chief revenue officer of Housing.com, said.
