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Pricing Outlook For India’s Top 10 Markets In 2020

Pricing Outlook For India’s Top 10 Markets In 2020

Pricing Outlook For India’s Top 10 Markets In 2020

In India’s major property markets, price growth has been comparatively slow in the past half a decade, due to an ongoing slump in demand. Nonetheless, those who predicted prices would see major correction have been proven wrong, as property values are seen appreciating, even if only mildly, across the country’s major residential markets.

Let’s examine the average apartment prices in the top 10 cities and the value appreciation that residential units here might witness, in 2020.

 

Ahmedabad

Average price: Rs 2,911 per sq ft

Prediction for 2020: Prices likely to move up

There has been a three per cent increase in average apartment price in this industrial nerve-centre in Gujarat. Despite that, Ahmedabad happens to be the most affordable housing market so far. This gives a reason to believe housing prices in the city will continue to move upwards shortly.

 

Bengaluru

Average price: Rs 5,205 per sq ft

Prediction for 2020: Prices likely to move up

In India’s Silicon Valley, housing prices continue to move upwards as new businesses – Bengaluru is a favourite among start-ups – continue to seek space here adding to the commercial value of the city.  Since growing businesses would continue to fuel the demand for residential real estate, prices may see further appreciation in 2020.  

 

Chennai

Average price: Rs 5,196 per sq ft

Prediction for 2020: Prices likely see a correction

In the past one year, there has been a minor correction of one per cent in property prices in Chennai. While water shortage remains a problem here, recurring instances of flood-related disasters are severely impacting the housing demand here. In 2020, prices could correct further, even if marginally. 

 

Gurugram

Average price: Rs 4,868 per sq ft

Prediction for 2020: Prices likely to fall

What still happens to be the most expensive property market in the national capital region (NCR) underwent a correction in the past one year — property prices in Gurugram fell four per cent. After getting a connectivity boost with the completion of the peripheral expressways, the city’s peripheries are seeing some demand. Average rates might see marginal correction in the upcoming year, as builders shift focus on shedding the inventory burden as quickly as possible.     

 

Hyderabad

Average price: Rs 5,215 per sq ft

Prediction for 2020: Prices likely to move up

Hyderabad continues to outperform all major Indian markets with its price growth — apartment values have appreciated 15 per cent in the past one year here; they have increased 40 per cent in the past half a decade. At the same time, demand for housing in India’s pharmaceutical capital has been consistent, keeping inventory volumes low.  All these factors might keep pushing property prices in Hyderabad upwards in 2020 as well.

 

Kolkata

Average price: Rs 4,029 per sq ft

Prediction for 2020: Prices likely to see a correction

While commercial activity is acting as a drag on this property market, the city of joy continues to be on top of the list for retirement homes. This may be the reason why prices increased by nearly four per cent in the past one year. However, at 34 months, the inventory overhang here is much higher than the national average of 28 months. This may push prices downwards in the year to come.

 

Mumbai

Average price: Rs 9,444 per sq ft

Prediction for 2020: Prices likely to move up

In India’s financial capital, one hardly sees a slowdown. That factor continues to push prices upwards, making Mumbai among the most expensive property markets in the world. Marginal appreciation is also on the cards in 2020.

 

Noida

Average price: Rs 4,960 per sq ft

Prediction for 2020: Prices likely to fall

This market has been the most severely affected from the ongoing demand slowdown. As a result of this, builders in this market are sitting on huge inventory, which they would take more than four years to sell off at the current sales velocity. As new builders from this region continue to make it to the dubious list of embattled entities, uncertainty continues to prevail, pushing prices down. In 2020, too, rates may undergo a marginal correction.  

 

Greater Noida

Average price: Rs 3,290 per sq ft

Prediction for 2020: Prices likely to move up

Prices have also seen a correction in the past in Noida’s affordable cousin. Since plans to create the third airport by 2023 in Jewar are firming up, with Zurich Airport AG winning the bid to develop the project, Greater Noida’s property market would get a boost and prices may see an upward movement in 2020.  

 

 Pune

Average price: Rs 4,861 per sq ft

Prediction for 2020: Prices likely to move up

Pune has seen apartment values grow three per cent in the past one year. In the past too, the price rise in this city has been consistent, brining Pune at par with most mega cities in terms of pricing. Prices are expected to see mild appreciation in the coming year too, as the demand for Pune real estate may grow on factors such as ease of living and clean environment.  

Note: All numbers sourced form PropTiger DataLabs.

 

Last Updated: Thu Jan 02 2020

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