Rates increased by 55% last year
Savills India report reveals
India’s real estate sector showed positive sentiment last year. The continued rise in prices reflects the strong demand for properties, with the prices of under-construction properties increasing by a significant 55%, according to the latest report by Savills India. The report detailed that the prices of properties under construction increased by 55% last year. “Prices in Gurugram rose by 55%, while Bengaluru saw a 25% increase, North Goa saw a 16% rise, and Mumbai’s prices increased by 10%,” the report stated. The growing price increases in the real estate sector are reflecting positive sentiment in the market and showing a strong demand base. The report highlighted that buyers are attracted to under-construction properties due to modern amenities, high-quality specifications, and favourable payment plans. On the other hand, ready-to-move-in properties also saw an average price increase of 25% last year, the report revealed.
The report analysed that the recent rise in capital values, along with the recovery of profits in the residential market, has led many to decide to purchase homes, anticipating further increases in property prices. It also mentioned that the recent decision by the Reserve Bank of India’s Monetary Policy Committee to maintain interest rates has further supported this trend.
“Strong economic growth and unique, modern amenities that align with contemporary lifestyles are the main reasons behind the increase in luxury home sales in 2024. With advanced amenities and affordable payment plans being favourable to buyers, demand has risen, leading to an increase in new launches,” said Shweta Jain, Managing Director of Savills India Residential Services.
The report also revealed that rental values in Noida have increased by 12% to 22%. Additionally, the average capital values of completed and under-construction properties in the area have risen by 1% to 24% on an annual basis. In Bengaluru, rental values have risen by 10%, while rental values in the eastern and northern micro-markets have increased by 20% and 19%, respectively.
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