Housing prices are rising due to good demand for luxury homes and growing confidence among investors.
There has been a strong increase in property prices in eight big cities of the country (except Hyderabad) during the second quarter ending in September. According to the latest report by PropTiger.com, a subsidiary of real estate technology platform REA India, property prices in the residential market of most cities have increased by double digits in the third quarter (July-September) of 2024. According to PTI news, in the report titled ‘Real Insight Residential: July-September 2024’, it has been said that this increase in prices has happened due to the increasing demand, especially for luxury houses.
Further pressure on prices is increasing
According to the news, in the last meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI), for the 10th consecutive time, there was no change in the repo rate and it was kept unchanged at 6.5 percent. This is increasing further pressure on prices. Due to this, companies as well as buyers are paying comparatively higher interest on loans, which is ultimately affecting the prices of houses.
According to the report, the highest increase of 57 percent in prices on an annual basis was seen in the residential market of National Capital Region of Delhi. It said that due to rising construction costs, adjustment in the original selling price of residential units has become necessary.
Increase by 21% in Ahmedabad, Mumbai and Bengaluru
Along with this, housing prices are increasing due to good demand for luxury homes and increasing confidence among investors. Apart from this, prices of residential units in Ahmedabad, Mumbai and Bengaluru also increased by a good 15-21 percent. Chennai and Kolkata witnessed a strong growth of 22 per cent year-on-year.
According to the report, Pune, often considered an affordable option compared to Mumbai, also saw a growth of 18 percent. Hyderabad, famous for the information technology (IT) sector, saw the lowest growth of seven per cent.
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