edited by: Mohammad Haris
Last Update: January 02, 2023, 4:38 PM IST
Under-construction projects in Mumbai, Bengaluru and Delhi-NCR witnessed higher appreciation in capital values as compared to completed projects.
There has also been a pick-up in demand in the rental market as professionals return to their places of work
Premium residential values in Mumbai, Bengaluru, Delhi, Gurugram and Noida are expected to witness a significant increase during 2022. Demand-side growth in the premium residential segment has been evident despite the RBI increasing benchmark lending rates by 225 bps over the year 2022. According to a report by real estate consulting firm Savills India.
It added that there has also been a pick-up in demand in the rental market as professionals have returned to their workplaces. In the backdrop of the hybrid work model, end-users are looking at renting bigger homes in residential complexes offering better amenities.
“Under-construction projects in these cities witnessed higher appreciation in capital values as compared to completed projects. This reflects buyers’ preference for new launches with better amenities and spacious units. Demand for quality homes for premium housing segment in 2023 likely to remain stable,” Savills India said in a statement.
Mumbai
The city saw a 1 percent year-on-year increase in average capital values for completed properties and a 3 percent year-on-year increase in average capital values for under-construction properties. “Navi Mumbai and Thane micromarkets witnessed significant growth of 3 per cent-8 per cent, owing to steady demand for completed as well as under-construction properties,” Savills India said in the statement.
Bangalore
Capital values for both completed and under-construction premium housing projects to increase by 4-8 per cent in different micro-markets in 2022. Among all the micro-markets in the city, central Bengaluru has the highest average capital value of around Rs 19,000 and Rs 15,500 for completed and under-construction projects, respectively.
Delhi
With a year-on-year increase of 2 per cent, the city is witnessing an increase in the average capital value for land parcels in 2022. The South Central region saw the biggest increase with an annual increase of 8 per cent. The average capital value for floors in the premium housing segment to remain stable in 2022 across all micro-markets in Delhi.
Gurgaon
Capital values of completed and under-construction projects to increase by 15 per cent and 22 per cent, respectively, in 2022. With an annual growth of 30 per cent, Dwarka Expressway to record highest growth in capital values for under-construction projects in 2022. The increase in plot prices is significant, with an annual increase of 32 percent in 2022. Dwarka Expressway has registered the maximum growth in plot development with an annual growth of 50 per cent.
Noida
Micro-markets see 9-17 per cent increase in capital values in 2022. Completed projects in Noida witnessed a steady growth of 12 per cent annually in capital values. Projects under construction see steady growth of 14 per cent in 2022 as compared to 10 per cent in 2021.
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