BENGALURU: Cities driven by the technology industry saw the fastest growth in residential property prices in the last decade, as per data from a report just released by property consultancy Anarock. Pune, Bengaluru and Hyderabad saw their average property price increase by 67%, 49% and 45% respectively. That was significantly higher than for Mumbai and Delhi.
But this decade was significantly worse than the last decade for all cities, barring Pune. The average property price in the top seven cities of India rose by 38% in the last decade, compared to 52% in the decade earlier. Anarock said it indicated that speculative growth has come down and the market is now enduser driven. The country’s property prices had a heady growth between 2000 and 2009 but experts have said that was mainly fueled by speculation from investors which eventually led to a slump in the segment from which the real estate sector is yet to recover.
“Speculative price growth has been significantly curtailed in the last decade. While the steep price increases of the preceding decade obviously favoured investors, they now account for less than 10% of residential property buyers in India. In the current era, end-users are in the driver’s seat,” Prashant Thakur, research head, said.
Average prices in Pune rose 67% – the highest between 2010 and the first quarter of this year amongst all the cities. The average price in Pune was about Rs 3,300 per sqft in 2010 and stood at Rs 5,510 in Q1 of this year. Contrary to trends in all other top cities, the growth in Pune in this decade was higher than in the last decade (52%).
Bengaluru was the No. 1 city in the 2000-2009 decade with an 82% growth. But in this decade, the average price was up only 49% – to Rs 4,975 per sqft. In India’s most heavily distressed market, Delhi NCR, the average price was up 19% compared to 34% in the previous decade. In the initial 5-year period, between 2010 and 2014, the average property price increased by 5-7% y-o-y. Thereafter, growth slowed down to 0-2%.