The average price of luxury homes in India, costing above Rs 1.5 crore, has recorded the highest jump of 24 per cent since 2018 so far this year, data released by real estate consultancy Anarock showed on Tuesday.
The prices of these homes in the top 7 cities in 2018 averaged around Rs 12,400 per square foot. At this point in 2023, the average price has increased to Rs 15,350 per sq ft.
Among the top 7 cities, Hyderabad recorded the highest jump of 42 per cent in the average price of luxury homes in this period. It rose from Rs 7,450/sq ft in 2018 to Rs 10,580/sq ft in the first half of 2023.
Bengaluru and Mumbai Metropolitan Region (MMR) recorded the second-highest average price hike at 27 per cent each.
In Bengaluru, the average price of luxury homes in 2018 stood at Rs 10,210/sq ft. Now, it has risen to Rs 12,970/sq ft. In MMR, the average price in the luxury segment in 2018 was Rs 23,119/sq ft; currently, it is Rs 29,260/sq ft.
"Extremely robust sales ably supported by a good supply pipeline have resulted in luxury homes witnessing the most significant price appreciation. Considering the relative price stagnation in this segment in earlier years, a 24 per cent increase over the last five years is notable. In the pre-pandemic period in 2019, sales in this segment were anything but stellar and this reflected in non-existent or negligible price growth," said Anuj Puri, chairman of Anarock Group.
MMR currently has the highest average price in the luxury segment. The average price in the region stands at Rs 29,260/sq ft. It is followed by Chennai with an average price of Rs 15,250/sq ft.
In the national capital region (NCR), the average price in the luxury category is currently Rs 14,500/sq ft.
On the other hand, Hyderabad's current average price in the luxury category is the lowest at Rs 10,580/sq ft.
How are the prices of affordable homes changing?
The demand for affordable homes, priced below Rs 40 lakh, has been muted as compared to the pre-pandemic era. These homes saw a price appreciation of 15 per cent in the same period. The average price in this category across the top 7 Indian cities was Rs 3,750/sq ft in 2018. Currently, it averages out at Rs 4,310/sq ft.
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At 19 per cent, NCR saw the highest average price jump in this category – from Rs 3,120/sq ft in 2018 to Rs 3,700 per sq ft in the first half of 2023.
These homes in Hyderabad saw the second-highest price appreciation of 16 per cent in this period – from Rs 3,460/sq ft in 2018 to Rs 4,000/sq ft in the first six months of 2023.
These are followed by MMR and Chennai with a price appreciation of 15 per cent.