Chennai: Property values in a majority of India’s prime residential markets have seen dismal growth in the past five years, indicating that a prolonged demand slowdown has kept value appreciation under check, said a data available with PropTiger.com show. At 7 per cent CAGR (compound annual growth rate), Hyderabad saw the highest increase in value of property among key markets between March 2015 and March 2020.
Besides Hyderabad, only Mumbai and Bengaluru saw any noteworthy rise — of 2.8 per cent and 2.1 per cent CAGR, respectively. The Gurugram and Noida markets, on the other hand, saw a decline in property values during the same five-year period. ‘An ongoing demand slowdown in India’s real estate market has kept price growth in check, as a result of which housing rates in most markets have shown only negligible growth,’ said group CEO, Housing.com, Makaan.com and PropTiger.com, Dhruv Agarwala.
He added, ‘If Hyderabad stands as an exception here, it has more to do with the fact that the base price in what is referred to as India’s pharmaceutical capital was quite low during 2015. The state bifurcation also pushed prices upwards. On the other hand, moderate correction is seen in key NCR markets, primarily because of major delays in project completion by key developers.’