Real Estate

Room for comfort: Hyderabad, Delhi and Bengaluru witness rise in property prices

Varun Agarwal Mumbai | Updated on January 21, 2020

However, top metros such as Mumbai, and Chennai saw a decline in Q3 2019

India’s top metropolitan cities including Mumbai, Chennai, Pune and Kolkata continued to see a decline in property prices through the third quarter of 2019.

The only three that managed to see an increase were Hyderabad, Delhi and Bengaluru, according to Knight Frank's latest report titled Global Residential Cities Index Q3 2019.

Hyderabad, in fact, was the only Indian city in the top 20 among 150 global cities tracked, in terms of appreciation in residential real estate prices, standing at the 14th spot with a healthy 9% year-on-year (YoY) rise in home prices.

The price growth has been strong in the Hyderabad residential market as shortfall in launches diverted homebuyers towards the ready unsold units, giving developers a bargaining edge.

Among other Indian cities which have seen an appreciation in home prices, New Delhi stood at the 73rd rank globally, with a home price appreciation of 3.2 per cent year on year, Bengaluru at the 94th position with a 2 per cent appreciation and Ahmedabad at the 108th spot with a 1.1 per cent rise.

Among the Indian cities which have seen degrowth in home prices, Kolkata was ranked at the 130th spot with a decline of 2 per cent, Mumbai at the 135th rank with a degrowth of 3 per cent and Chennai at the 136th slot with a fall of 3 per cent. Pune was the lowest-ranked Indian city standing at the 138th spot, registering a 3.5 per cent decline in home prices.

Budapest leads

The Global Residential Cities Index tracks the movement in mainstream residential prices across 150 cities worldwide using official statistics. Budapest in Hungary leads the Global Residential Cities Index Q3 2019 with the highest annual growth rate of 24 per cent, followed by Xi'an and Wuhan in China at 15.9 per cent and 14.9 per cent, respectively.

Prices across the 150 cities worldwide increased at 3.2 per cent on average, the weakest annual rate registered since the second quarter of 2015. Yet despite this, more than 78 per cent of the 150 cities tracked by the index registered either flat or rising prices over the 12-month period.

“During the last four years, the growth in residential prices in most of the top eight cities of India has been below retail inflation growth and the gap has progressively increased since H1 2016. Hyderabad has been the only market to buck the trend and record residential price growth over the retail inflation level. This end-user friendly movement in prices across cities is a step in the right direction and more in-line with the contemporary home-buyer’s needs,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.

Published on January 21, 2020

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