Housing Prices Surge by 30% in Delhi-NCR Real Estate Market - Experts Insights
India's housing market witnesses a significant 20% price increase, driven by low interest rates and strong demand, particularly in luxury and mid-range homes.
The housing market in India has seen a significant 20% price increase in the last two years, driven by factors like low interest rates and a positive economic outlook. Demand for luxury and mid-range homes has surged due to high-value transactions and attractive rental yields. 30% rise in housing prices in Delhi-NCR and other Metropolitan areas indicate strong demand in the market.
According to the Colliers-Liases Foras housing index tracker, cities like Delhi-NCR, Bengaluru, and Kolkata have witnessed the highest increase in average housing prices. Factors contributing to the 30% rise in housing prices in Delhi-NCR include rising demand, especially in the mid and luxury segments. Developers have successfully passed on the increased construction costs to buyers.
Devender Aggarwal, Joint Managing Director and Co-Founder of Signature Global (India) Ltd., highlighted the surge in demand for mid-income and premium homes in Gurugram. Factors such as favorable policies and evolving consumer preferences contribute to increased demand.
The Delhi-NCR's real estate market growth, particularly in areas like Dwarka Expressway, New Gurugram, and Southern Peripheral Road, has intensified due to excellent connectivity and changing lifestyle preferences. The average housing prices have risen by 9% year-over-year across India in Q4, indicating a positive outlook for the real estate sector.
Luxury and mid-segment housing have seen a surge in demand, leading to high property sales and value appreciation. Delhi-NCR witnessed a remarkable decline in unsold inventory, indicating a buoyant housing market.
Aman Trehan, Executive Director of Trehan Iris, mentioned the significant expansion of the real estate sector due to rising housing prices. The housing price trends in Delhi-NCR observed a healthy improvement, with Gurugram experiencing a substantial increase due to strong pricing momentum.
Factors contributing to the increase in housing prices include favorable interest rates, making homeownership more accessible. This increased demand puts upward pressure on housing prices, creating a cycle of rising prices.
Parvinder Singh, CEO of Trident Realty, attributed the surge in housing prices to urbanization, infrastructure development, and rising incomes. With a positive economic outlook, Delhi-NCR's real estate market is expected to expand further.
Santosh Agarwal, CFO and Executive Director of Alphacorp, mentioned the unprecedented surge in housing prices in cities like Bengaluru, Delhi NCR, and Kolkata. Expectations for sustained growth remain high, with visible upcoming projects and market expansion.
Ashish Sharma, AVP Operations at Brahma Group, highlighted the surge in housing prices driven by low mortgage rates, population growth, and a growing economy. The Delhi NCR region saw a steady increase in housing prices, indicating the robust expansion of the real estate sector.
