NEW DELHI: Southern cities of Hyderabad and Chennai witnessed the highest appreciation in residential project prices amongst major Indian cities in the third quarter of 2021 (Q3CY2021) followed by Kolkata and Ahmedabad, according to a Knight Frank report.
Meanwhile, Bengaluru, Delhi, Pune and Mumbai witnessed fall in home prices during the quarter on an annualised basis.
Hyderabad was positioned at 128th rank on Knight Frank’s Global Residential Cities Index with 2.5% year-on-year rise in home prices.
On domestic level, Hyderabad recorded the highest appreciation. Chennai ranked 2nd amongst Indian cities and 131st globally with price appreciation of 2.2%.
Kolkata ranked 135th and Ahmedabad at 139th on the global index with a price appreciation of 1.5% and 0.4% respectively in the residential asset class.
Mumbai was the lowest-ranked Indian city at 146th on the index, registering a decline of 1.8% in home prices.
Among the other Indian cities that have seen marginal decline in home prices were Bengaluru, at the 140th spot with a decline of 0.2% YoY, followed by Delhi at 142nd rank with a decline of 0.7% YoY and Pune ranked 144th with a fall of 1.5% YoY.
This trend comes amid concerns that real estate prices will see a major hike next year due to steep rise in raw material cost.
Many developers in past one-two months have hinted that if prices of cement and steel are not controlled, home prices may soar as much as 15% in near future.
Shishir Baijal, Chairman & MD, Knight Frank India, said, “Developments in the pricing dynamics will depend on the future demand. Factors like interest rates, impact of Omicron and inflationary pressures, amongst others will determine buyer sentiments.”