NEW DELHI: The average prices of luxury homes costing more than Rs 1.5 crore have increased by 24 per cent in the last five years across seven major cities, according to property consultant Anarock.
Luxury homes recorded the highest average price appreciation of 24 per cent in the last five years, while rates of affordable homes below Rs 40 lakh went up by 15 per cent.
The price increase in the mid- and premium-housing segment -- costing in the range of Rs 40 lakh to Rs 1.5 crore -- was 18 per cent in the last five years.
Prices of luxury homes in the top seven cities in 2018 were at an average of Rs 12,400 per square feet.
The rates have increased to Rs 15350 per square feet now, Anarock said in a report released on Tuesday.
The average price in the affordable homes category across the top seven cities was Rs 3750 per square feet in 2018 as against Rs 4310 at present.
Mid- and premium-segment homes saw the average price go up from Rs 6050 per square feet in 2018 to Rs 7120 per square feet in 2023.
ALSO READ | REALTY – Myth and Reality
Anarock Chairman Anuj Puri said, "Extremely robust sales, ably supported by 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."
Commenting on the report, Pradeep Aggarwal, founder and chairman, Signature Global (India) Ltd, said housing prices have risen in the last two years after remaining stagnant for almost a decade.
"We are witnessing price appreciation in all segments, be it affordable, mid-income, luxury and ultra luxury," he said.
The price growth is higher in luxury homes category because of a surge in demand amid limited supply, Aggarwal said.
Mohit Jain, managing director, Krisumi Corporation, said, "Luxury homes witnessing maximum price appreciation in the last five years is not at all surprising, considering that the demand in this segment has surged during and post-pandemic."
People are looking to buy spacious homes with better amenities, he added.
"Luxury projects are now adopting green building norms in a big way, adding to the cost. Usage of top-notch construction material, finishes, appliances and design results in higher cost of construction," Jain said.