NEW DELHI: Property rates increased by an average 38 per cent across seven major cities in the last decade as compared to 52 per cent rise during 2000-2009, according to property consultant Anarock. In the previous decade (2000-2009), the average housing prices rose to Rs 3,784 per sq ft in 2009 from Rs 2,490 per sq ft in 2000, it said.
“Average property prices in the top seven cities in the last decade (2010-Q1 2020) saw a close to 38 per cent jump. The average price of a home in the top 7 cities rose from approximately Rs 4,063 per sq ft in 2010 to Rs 5,599 per sq ft by Q1 2020,” Anarock said in a statement.
Mumbai-based Anarock is one of the leading property consultants, focusing mainly on the sale of housing units on behalf of developers. It clocked 36 per cent growth in revenue at Rs 256 crore during the last financial year.
According to the data, during the initial 5-year period between 2010 to Q1 2020, the average property prices increased by 5-7 per cent year-on-year but thereafter it came in the range of 0-2 per cent.
City-wise, Pune saw the maximum rise of 67 per cent during the period. The average price in Pune was about Rs 3,300 per sq ft in 2010 and rose to Rs 5,510 per sq ft in January-March 2020.
The price in Pune was up 52 per cent during 2000-2009.
Hyderabad witnessed a 45 per cent increase in price to Rs 4,195 per sq ft from Rs 2,897 per sq ft. During 2000-2009, the city witnessed an average 65 per cent jump in prices.
Housing prices rose 44 per cent in Kolkata to Rs 4,385 per sq ft from Rs 3,050 per sq ft in 2010. In 2000-2009 period, the city prices rose by 58 per cent.
MMR (Mumbai Metropolitan Region) saw a 33 per cent increase in property prices to Rs 10,610 per sq ft from Rs 7,965 per sq ft in 2010. In 2000-2009, the city saw a whopping 67 per cent jump – the highest among all cities.
Prices in Chennai rose by nearly 20 per cent to Rs 4,935 per sq ft from Rs 4,100 per sq ft. In 2000-2009 period, the city witnessed a 62 per cent jump.
The national capital region (Delhi-NCR) saw the least increase in property prices by 19 per cent between 2010-Q1 2020 period. The average prices increased to Rs 4,580 per sq ft from Rs 3,850 per sq ft.
In 2000-2009 period too, Delhi-NCR witnessed the least price rise of 34 per cent.
“While the question of affordability still looms large over most Indians’ home buying decisions, property price growth has gradually stagnated,” Anarock Director and Head-Research Prashant Thakur said.
“The value of property, defined by size and location, is now distinctly higher. Also, while there is no denying the challenges presented by the current COVID-19 pandemic, India’s residential market now favours end-users,” he said.
However, Thakur said this was not always the case.
“In earlier years, there were steep price growth spikes on account of speculative buying and selling. Homes previously were traded like commodities, severely hampering the options of genuine end-users,” he said.