Property prices in the country are increasing rapidly. In the last two years, the property prices in the top 7 cities of India have increased at a CAGR (Compounded Annual Growth Rate) of 13 percent. A report by real estate consultant firm Anarock said that 8.25 lakh new houses have been launched in the last two years. At the same time, 8.72 lakh houses have been sold during this period. Therefore, property prices have increased rapidly.
Tremendous growth in the last two years
The report further states that property prices have been rising since 2013. They have increased at a CAGR of 13 percent in the last two years. At the same time, inflation has fallen by 1.3 percent to 5.4 percent in the financial year 2023-24. This shows that real estate is outperforming inflation.
This is how the prices increased
Real estate has emerged as a medium of investment
The consultant firm says that in the era of inflation, real estate has emerged as a good investment medium to create and increase one’s wealth. With the increase in population, urbanization is also increasing rapidly. Due to this, the rise in property prices may continue in the coming times.
Reduced risk on real estate investments
Shobhit Agarwal, Managing Director and CEO, Anarock Capital, said that after the 2019 general elections, the prices of houses in the top 7 cities of the country have increased at a CAGR of 6 percent. The average price of one square feet was Rs 5,600 in June 2019, which has increased to Rs 7,550 per square feet by the end of FY 2024.
Aggarwal further said that an investor can reduce his risk by keeping real estate in his portfolio. Real estate is not negatively affected by inflation like stocks and bonds. It has its own value, which remains forever.
Input: IANS
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