Average property prices in eight major cities rose 7% last year to 6,700-6,900 rupees per square foot compared to 2021.
According to PropTiger, median home prices have risen on average nearly 7% over the past year due to rising construction costs coupled with pent-up demand.
Average house prices in eight major cities including Gurgaon, Bengaluru, Pune, Delhi-NCR, Kolkata, Mumbai, Noida, Ahmedabad rose by 7% last year to Rs 6,700-6,900 per square feet.
However, due to pent-up demand over the past two years (2020 and 2021) when consumer demand declined due to the Covid-19 pandemic, rising residential property prices did not affect 2022 sales.
“Housing prices remained by and large stable during the 2016-21 period. The year 2022 saw an appreciation in prices as the rates of key construction materials increased because of global headwinds like the Russia-Ukraine war. Strong revival in demand for both under-construction and ready to move in units also played a role in modest single digit increase in prices,” said Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com & Makaan.com
“With the increase in the overall construction cost, builders were forced to raise the basic selling price (BSP) of apartments,” he added.
Gurgaon saw the highest price increase of around 13%, Bengaluru and Delhi-NCR both recorded price increases of 9%, followed by Pune at 8%. House prices in Ahmedabad and Kolkata rose by 7% each.
Gurugram saw the highest increase at 13% to Rs 7,000-7,200 per square feet.
In Delhi NCR, residential property prices increased by 9% to Rs 4,800-5,000 psf. In the two major markets of Delhi-NCR, Noida grew by 7% to Rs. 5,400-5,600 per square feet.