Which Indian City Saw the Highest Increase in Property Prices Over the Last 5 Years? Find Out
Which are the fastest growing cities in India? Although it is an interesting question, finding the answer depends on many parameters.
Buying a property, especially a home in Mumbai is the largest investment one makes. In fact, housing and real estate have emerged as a major area for the generation of wealth. This is why it is important to know the property prices to have an idea of the growth.
The Reserve Bank of India publishes quarterly reports on HPI for 10 ten major cities. It covers Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai. The National Housing Bank, a wholly owned subsidiary of the Reserve Bank of India also publishes data of property prices. While it looks sluggish for a short period, there is an increase over longer periods.
To give the scenario at a glance we have come up with the gist. Read on to know the details.
Due to its strategic location, Ahmedabad has gone through a rapid housing development process. The rise in property price here is moderate.
According to the Compound Annual Growth Rate (CAGR), the city has experienced a growth of 1.79% in 1 year. For a period of 3 years, the growth rate is 8.04%. And for 5 years it comes to 8.66%
Due to its emergence as an IT hub, it has turned to be an ideal property investment destination. As a result, the property prices in Bangalore show a positive trend with consistent growth.
As per CAGR, the growth in property prices for 1 year, 3 years and 5 years are 7.80%, 5.71%, and 7.51% respectively.
Property prices in Chennai hold a strong ground. Being a prominent city in Sothern India, many NRIs favor Chennai for investment.
The Compound Annual Growth Rate (CAGR) reveals that the growth in prices for 1 year is 13.78%. Although the growth came down to 6.80% for 3 years, it is quite steady with a rate of 7.21% for 5 years.
Being the capital city, developers with strong profiles are investing here. The growth in price shows a substantial increase when computed for 5 years.
While the growth rate for 1 year and 3 years are 3.31% and 4.94% only, it is 10.43% for 5 years. This shows that Property prices in Delhi are strongly bouncing back.
Property prices in Jaipur have suffered much downward pressure due to various reasons. But it has absorbed the same maintained a steady rate in the three computing periods.
For a period of 1 year, it is 2.28% and for 2 years it is 3.93%. And, for 5 years the growth in prices is 3.72%. This indicates its steadiness.
Kanpur is having some trouble in the property price trends. As per the CAGR report, there is a continuous diminishing trend in property prices. While it shows a growth of 11.29% for 5 years, it came down to 6.57% when computed for 3 years. And, for 1 year the prices fell by 6.5% from the past year indicating serious trouble.
Kochi is a port city in the Ernakulam district of Kerala in the south-west part of India. Having Info parks, IT parks, and the upcoming metro rail, the real estate business is booming here.
The property prices in Kochi gave a stellar performance. The city has a 28.8% rise in property prices annually. There is a steady increase. The price growth for 3 years and 1 year is 17.31% and 9.39%.
Being a cosmopolitan city with a very high rate of migration, the property business is booming in Kolkata. As the prices are still reasonable, the investors favor Kolkata.
As per CAGR the growth in property prices for 1 year is 3.39%, for 3 Years it is 5.35% and for a period of 5 years, it is 9.27%. Kolkata is very much likely to turn around
Lucknow is one of the most populous and cultural cities in India. As a result, a large number of new property development initiatives are happening.
As per CAGR the growth in prices for 1 year, 3 years and 5 years are 6.41%, 10.07%, and 13.1% respectively. The city strongly positioned when considering the property price hike.
10. Mumbai Including the Periphery
There is a general uptick. This is more in the western suburbs due to the metro connection from Andheri to Dahisar. Also, being the financial capital of the country it is vastly expanding its periphery.
According to the Compound Annual Growth Rate (CAGR), the city has experienced a growth of 3.46% in 1 year. For a period of 3 years, the growth rate is 8.43%. And for 5 years it comes to 9.85%.
Factors Contributing to Property Prices
Picture this. A 1200 square feet property is selling at Rs. 2500 per square feet. This does not mean that you will get the property for Rs 300,000. The developers only advertise the basic price. But there are many other costs like
Preferential location charge
Infrastructure development charge
Electricity, water, and sewerage charges
Car parking space charges
Frequently Asked Questions for Buying Property
How many properties can I buy?
As many as you can
Is there any capital gain on property purchases?
Acquiring a property means gaining capital asset. As such capital gain tax is levied.
Can anyone register the property on my behalf?
Yes, only through a Power of Attorney.
How to verify if the documents are genuine?
You can verify these from the respective authorities. Project approval from Municipal authorities, Ownership from the office of Registration, and society share certificates from the society.
Purchasing property is a good investment for living in. It becomes very good, especially, when you do this with an exit-strategy. The above gives you the trend of property prices in different cities. Use this information to make the most informative property purchase decision for a substantial gain.