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Property prices continue to rise across India in 2012

Comments(2) Sub Category:Property Buying,Real Estate,Real Estate Trend Posted On: Dec 26, 2012

The year 2012 has been sluggish for Indian economy and the real estate sector is not an exception. Even though real estate in India has been battling demons like high construction costs, high interest rates, cash crunch and drooping sales across cities, home prices have continued to go up throughout the year.

Home prices in major Indian cities have gone up by 10%-12% in 2012, owning a house all the more difficult for home buyers. Both mid-range and high range properties have witnessed price rise in 2012. While price of mid range properties have gone up by 10%, high range properties have risen up by 12% in one year.

Real estate prices in 2012 in top cities

Let us take a look at the housing price in prime locations of the major Indian cities as of July-September, 2012.

Mumbai

Location

Average price (Rs/ sq ft)

Price rise (Q-o-Q)

Altamount Road

70000

5.00%

Bandra East

25000

19.00%

Andheri West

18500

5.00%

Colaba

45200

10.00%

Juhu Beach Area

31600

19.00%

Delhi NCR

Location

Average price (Rs/ sq ft)

Price rise (Q-o-Q)

Noida Expressway 4500 5.00%
Dwarka 9500 3.00%
DLF City Phase I 9000 11.00%
Golf Course Extension 8000 10.00%
Gurgaon Faridabad Road 7300 10.00%

Bangalore

Location

Average price (Rs/ sq ft)

Price rise (Q-o-Q)

Richmond Town

10800

18.00%

Indira Nagar

7200

4.00%

K R Puram

3500

9.00%

Whitefield

4480

2.00%

Sarjapur

3320

19.00%

Chennai

Location

Average price (Rs/ sq ft)

Price rise (Q-o-Q)

Adyar

10600

7.00%

Adambakkam

5700

6.00%

Perambur

5500

5.00%

Oragadam

3200

4.00%

T Nagar

10000

-4.00%

NHB Residex 2012

National Housing Bank’s (NHB) Residex Index tracks the movement of residential prices across the major cities of India. Here are the NHB Residex index for 10 cities across India. The table shows city-wise housing price index for the first two quarters of 2012-2013 financial year, taking 2007 as base.

Cities

March-June, 2012

July-September, 2012

Faridabad

217

216

Hyderabad

85

84

Mumbai

197

198

Delhi

172

178

Pune

200

201

Bangalore

92

98

Ahmedabad

174

180

Chennai

309

312

Kolkata

196

191

Guwahati

159

158

Housing prices have been on the higher side across India. Most of the cities have recorded price rise over the past few quarters. Maximum increase in housing prices has been observed in Pune (10.5 per cent), which has been followed by Bengaluru (8.7 per cent). Housing prices have also been on the rise in non metros like Faridabad, Guwahati and Ahmedabad.

Home price rise in 2012

The year 2012 has seen rise in housing prices – both in high-end and in mid-segment, as the table shows. High-end houses in Delhi-NCR witnessed a 22% rise in capital value over the period of last one year. Pune’s high-end segment recorded a rise of 20% as well. In the mid-segment, Chennai has recorded the highest rise in capital values with an average of 16%. Delhi NCR and Mumbai recorded a rise of 15% and 14% respectively in mid-segment in one year.

In Bangalore, there has been an average price increase of 11%-12%, which is the highest among all the big cities. In Central Bangalore, there has been an average increase of 44% in high-end home prices. Gurgaon follows with 35% increase. In the mid-segment, housing price appreciation is highest in Gurgaon (31%). Aundh in Pune follows next with 30% increase.

As per the estimates of the analysts, a young professional would need an average 4-5 years of savings to be able to pay the down payment for a house in Chennai, Pune or Bangalore. The period shoots up to 7-8 years if one plans to buy a home in Mumbai or Delhi. Among the big cities, Hyderabad and Pune are deemed to be the most affordable cities for either to rent or buy a house.

The average middle class Indian is finding it hard to fulfill their hope of owning a house in the Indian cities. Prices continue to rise on the face of inflation and rising holding and operating cost; and banks are being increasingly cautious to lend money to individuals.

Housing price forecast 2013

A good news for the home buyers is that considering the sluggish sales and dwindling demands, price appreciation has shown signs of stagnation in the last quarter. The Finance Ministry has taken the rise in number of unsold units seriously and Confederation of real estate developers association of India (CREDAI) has asked its members to sell maximum number of units at discounted prices. The banks have lowered the interest rates for home loans recently to boost sales of housing units, which again promise increased real estate transaction.

Read more real estate articles:

What home buyers want in Bangalore: CommonFloor.com Survey

Indian real estate in 2013: A forecast

Top real estate destinations in coming 5 years

 

2 Responses to “Property prices continue to rise across India in 2012”

  1. Veena GK says:

    Thanks, I was searching for price trend and looking for the housing price in prime locations for 2012. Thanks for the write up.

  2. Tanya Gupta says:

    What do you expect the real estate price trend or Housing price forecast after budget 2014 from Modi Govt.

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