New Delhi, 23rd December 2024: Property values in India’s National Capital Region (NCR) have shown significant increase in a rather short time span as the country’s rich continue to pour millions in this highly promising residential market, inspired by lifestyle aspirations. According to the latest findings of the Housing Price Index (HPI), a leading indicator of price trends in India’s key realty markets, the NCR, with an HPI reading of 178, has outperformed its peers, primarily driven by strong end-user demand, investor interest and significant value appreciation in key micro-markets such as New Gurgaon, Noida Extension and Dwarka Expressway.
Developed jointly by leading real estate app Housing.com and global business school Indian School of Business (ISB), the HPI serves as a tool that tracks changes in residential home prices across India’s 13 major markets.
All-India HPI moves 2 points up in Sept; Bengaluru, Kolkata show 12-point jump
The All-India HPI reached 128 in September, marking a 2-point quarter-on-quarter increase, reflecting steady growth in property values across major residential hubs. These findings reaffirm the strength of India’s residential real estate market, as it navigates global and domestic challenges while responding to evolving buyer needs, the report notes.
Other cities that have displayed significant improvement in price growth include Bengaluru and Kolkata. Demand-driven growth in micro-markets such as Varthur and Devanahalli triggered value growth in India’s IT capital: the city saw its reading jump 12 points, from 155 to 167, from June to September. The reading for Kolkata showed a similar jump, from 138 to 150 in the same period.
“With an improvement in infrastructure and connectivity, Kolkata is gradually showing improvements in terms of liveability. Despite a sharp price rise, the city remains more affordable than other metros, providing it a certain edge, especially to people looking for post-retirement homes,” says the report.
‘Rising property values reflect a stable, maturing market’
Mr. Amit Masaldan, Chief Revenue Officer, Housing.com, said: “Delhi-NCR’s remarkable performance in the Housing Price Index is a testament to the region’s strong fundamentals, underpinned by robust demand and strategic developments in key micro-markets. This growth aligns with India’s broader real estate trajectory, where rising property values reflect a stable and maturing market. Despite affordability challenges, end-users and investors are demonstrating confidence, driven by the promise of long-term value creation.”
“India’s real estate sector continues to evolve, shaped by transformative infrastructure projects, urbanisation trends, and growing aspirations for larger homes. As we move forward, the sector is poised to contribute significantly to India’s economic narrative, offering opportunities across residential, commercial, and emerging segments. With strategic planning and alignment to buyer preferences, the market is set to sustain its growth momentum while adapting to the new realities,” Mr. Masaldan added.
“We see a significant variation in the trends in the overall Indian market. Over the past two years, the NCR region has experienced sharp price increases, accompanied by a significant slowdown in sales. In contrast, the Mumbai region has witnessed modest price growth alongside a robust increase in sales. While there are broader economic headwinds, India’s real estate sector is mature and well-positioned to withstand short-term turbulence,” said Mr Shekhar Tomar, Assistant Professor, Economics and Public Policy, ISB.