2024 Property Trends: Price Spikes in Delhi, Noida, Gurugram, Bengaluru, and Mumbai
India’s real estate market is always evolving with more opportunities unveiling themselves now and then. 2024 has brought about a remarkable transformation, particularly in the premium residential segment. Major cities such as Delhi, Noida, Gurugram, Bengaluru, and Mumbai are witnessing an unprecedented surge in the prices of under-construction properties.
According to a recent report by global property consulting firm Savills India, these cities have seen price hikes of up to 53% as of June 2024, with Gurugram leading the charge. This surge is not just confined to under-construction properties; completed projects have also become much coveted, suggesting a strong and sustained demand in the housing market. This price trend is garnering the attention of investors and homebuyers alike, hinting at a wave of flourishing investments in the premium housing market.
Price Trends of 2024
Gurugram: Acing the Game
Gurugram is top-ranked in this price surge and the data is mind-blowing. The under-construction properties witnessed a surprising price increase ranging from 13% to 53%. This dramatic rise reflects the city’s growing appeal and the significant investments flocking into the real estate sector. Notably, completed projects in Gurugram have also seen prices rise by up to 44%, further establishing it as a top real estate destination.
Top Players on the List
Other cities are not far behind in this trend. Let’s look at the numbers from Noida that follow closely to those of Gurgaon, with under-construction property prices rising between 19% and 43%. North Goa has also experienced a significant price jump, ranging from 16% to 36%. Mumbai and Bengaluru have witnessed price increases of 1% to 21% and 5.2% to 11.5%, respectively, in their under-construction properties. In terms of completed projects, North Goa stands out again with a price increase of 16% to 36%, followed by Delhi with a rise of 3% to 27%. Bengaluru and Mumbai have seen more modest increases, with prices going up by 3.2% to 7.5% and 1% to 7%, respectively.
Factors Driving the Price Trends
Strong Market Demand
Savills India points out that the continued upward movement in prices indicates a strong demand in the premium housing market. The Reserve Bank of India (RBI) has maintained interest rates for the sixth consecutive time, which is expected to further boost the residential market. This stable interest rate environment has created a conducive atmosphere for both investors and homebuyers, driving up demand and, consequently, prices.
Investor and Buyer Trends
The market trends show that investor interest is gravitating towards new launches, while end-users are seeking ready-to-move-in properties. This shift in preference is quite logical as it suits the purpose of the property buyers. The trend is evident in the increased demand for older developments in grade-A corridors, which have seen a spike in interest from both buyers and tenants.
During the first half of 2024, buyer sentiment was particularly upbeat. Investors were keen on new launches, while end-users focused on properties that were ready for immediate occupancy. The demand is substantially higher for villas and apartments with large balconies and green patches, highlighting a preference for spacious and greenery in the enclave.
Luxury Segment and Sustainable Living
The luxury segment has also seen notable trends, with increased attention to the 4-bedroom format in both primary and secondary markets. This reflects a growing appetite for more luxurious and spacious living arrangements. Additionally, there has been a significant rise in new launches in Gurugram and Delhi, further indicating a strong demand for luxury residences.
In the first half of 2024, the buyer sentiment was extremely positive, with a clear division between investor interest in new launches and end-user preference for ready-to-move-in properties. The older developments in grade-A corridors have seen increased demand from both buyers and tenants, highlighting the multi-utilitarian natrue of the location.
There is a growing demand for upscale, sustainable living. Buyers are now seeking green buildings that offer sustainable living options beyond traditional amenities. This shift towards nature-centric properties reflects a broader trend towards nature-conscious living and a desire for high-quality and sustainable housing.
Conclusion
As it is apparent, the significant price increases in both under-construction and completed properties across major Indian cities point towards a thriving real estate market. The other factors in the market like the strong demand, stable interest rates, and growing preference for luxury and sustainable living options are signalling a positive growth trajectory. As the market continues to evolve, these trends provide valuable insights for investors and homebuyers looking to navigate the complexities of India’s real estate landscape.
