India’s top seven cities have witnessed a significant surge in residential property prices due to robust demand and increased supply. Between 2019 and the first half of 2024, prices rose by an average of 45%, with certain micro-markets experiencing even higher increases.
Key Micro-Markets and Growth
Bengaluru’s Bagaluru: Saw a 90% price increase, with prices rising from ₹4,300 to ₹8,151 per square foot. Most new supplies targeted mid- to premium segments.
Hyderabad’s Kokapet: Experienced an 89% price increase due to growing demand.
Bengaluru’s Whitefield: Recorded an 80% increase driven by its tech hub status.
City-Level Trends
Hyderabad led with a 64% price increase, followed by Bengaluru at 57%. Kolkata had the lowest growth at 25%, while NCR and MMR both recorded a 48% rise.
Economic and Market Context
Factors driving the real estate boom:
- Economic Growth: India’s GDP growth exceeding 8% fueled housing demand.
- Post-Pandemic Recovery: Market rebounded swiftly post-pandemic, outpacing general inflation.
- Policy Support: Government initiatives, like 100% FDI for township development, bolstered the sector.
Why It Matters
This surge in residential real estate reflects broader economic trends in India, underscoring the need for strategic urban planning to accommodate growing populations and ensure long-term prosperity.