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Mumbai’s average capital value appreciation in the mid-segment residential properties slows to 16 per cent as Bengaluru gains the most at 41 per cent in last 3 years, as per a report by real estate consultant Cushman & Wakefield.
The report analyses the performance of the residential segment across top seven cities to rank the average capital value appreciations across the cities.
Bengaluru recorded the highest average appreciation of 41% in the mid-end segment, followed by Pune which recorded an average appreciation of 28% in the period 2011 – 2014. Chennai (27%), Delhi-NCR (22%) and Kolkata (17%) also saw noteworthy increases, in the period under consideration.
In the high-end segment, Pune recorded the highest average appreciation at 39% in the high-end properties, followed by Bengaluru (37%), Chennai (34%) and Kolkata (26%), while Hyderabad was at the bottom at (16%) below Delhi-NCR (24%) and Mumbai (24%) between 2011 and 2014.
While all cities have seen capital values increase between 14% - 41% in mid segment, high- end properties recorded appreciation in the range of 16% - 39% in the same period, the report said.
Shveta Jain, Executive Director, Residential Services Cushman & Wakefield said, “Despite the disparity in levels of average appreciation in capital values in the past, it is heartening to see that against poorer economic sentiments, all markets have recorded capital appreciation. It is interesting to note that markets which are largely end user driven are also the ones to record highest average increases in capital values while investor driven markets such as Delhi-NCR and Mumbai have remained contained in appreciation received over the period. This is largely because of the fact that in the last few years due to factors such as slower economic growth, devaluation of the Indian rupee against dollar and general unrest on account of factors such as inflation, slower rate of real estate development etc. which has led more probable markets of Delhi-NCR and Mumbai to see a slower rate of appreciation.”
“Going forward, the demand for mid-end segment housing will be robust due to tax reforms in the recent budget and positive economic sentiment. However, due to the excess supply scenario in the mid-end segment an exponential growth in capital value is highly unlikely in the short term,” Jain added.
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