There has been a sharp rise in property prices in eight major cities of the country (except Hyderabad) during the second quarter ending September. According to the latest report by PropTiger.com, a subsidiary of real estate technology platform REA India, property prices in the residential market of most cities increased by double digits in the third quarter (July-September) of 2024. According to PTI News, in the report titled ‘Real Insight Residential: July-September 2024’, has said that this price increase has come about due to growing demand, especially for luxury homes.
Price pressure increases
According to the news, in the latest meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI), for the tenth consecutive time, there was no change in the repo rate and it remained unchanged at 6.5 percent . This is further increasing pressure on prices. Due to this, both businesses and buyers pay comparatively higher interest on loans, which ultimately influences home prices.
According to the report, the highest price increase of 57 per cent year-on-year was seen in the residential market of the National Capital Region of Delhi. He said that due to rising construction costs, an adjustment to the original sales price of the residential units has become necessary.
21% increase in Ahmedabad, Mumbai and Bengaluru
Furthermore, house prices are rising due to good demand for luxury homes and growing confidence among investors. Additionally, house prices in Ahmedabad, Mumbai and Bengaluru also increased by 15-21 per cent. Chennai and Kolkata witnessed strong growth of 22 per cent year-on-year.
According to the report, Pune, often considered an affordable alternative to Mumbai, also saw 18 per cent growth. Hyderabad, famous for the information technology (IT) sector, saw the lowest growth of seven per cent.
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