Indian Cities with highest increase in property prices over the past 5 years
Indian real estate is bubbling! As property prices are witnessing an uptrend across the country. Big thanks to the powerful economic growth and huge demand by the actual buyers.
Which Indian city saw the highest increase in property prices over the past 5 years?
Yes, most of the people are of the view that the “Indian real estate sector is a safer and more attractive investment option compared with the stocks...”
The Indian real estate market is booming, with property prices (in urban centers) hitting a five year high. Except for Kanpur, the rates of property in India’s ten major cities have increased in the third quarter of the financial year (2018-2019) on an annual basis.
According to the Reserve Bank of India’s (RBI) House Price Index (HPI):
- The all India House Price Index shows an annual increase of 4.7 per cent.
- With a 28.2 per cent increase, Kerala’s financial capital Kochi saw the highest upwards movement in rates.
- A quarterly analysis shows rates increased the most in Kochi at 8.5 per cent while they declined the most in Rajasthan’s capital Jaipur (3.1 per cent fall).
- Cities included in the analysis – Delhi, Mumbai, Kanpur, Lucknow, Kochi have outperformed the national 5-year average.
- If we compare the price movement in the past 5 years Uttar Pradesh capital Lucknow has seen a cutting-edge movement, where property prices have climbed over 13 per cent.
- Also, HPI shows, the rates have increased across cities for half a decade. Real estate prices in Mumbai rose in the third quarter of (2018-19) when compared to the previous quarters.
- Other cities where property prices rocketed in double digits this period are Kanpur (11.3 per cent) and National Capital Delhi (10.4 per cent).
- While Bangalore spotted a marginal fall (1.1%) in the third quarter, its 1-year price rise (7.8%) was better than the all India growth rate (4.7%).
Indian Real Estate Bubble
Let’s have a look…
All-India price growth (CAGR)
|
1 year |
4.66% |
|
3 years |
6.72% |
|
5 years |
9.3% |
Kochi with the sharpest performance in property prices
Growth in prices (CAGR)
|
1 year |
28.84% |
|
3 years |
17.31% |
|
5 years |
9.49% |
Mumbai
Growth in prices (CAGR)
|
1 year |
3.46% |
|
3 years |
8.43% |
|
5 years |
9.85% |
Bangalore
Growth in prices (CAGR)
|
1 year |
7.80% |
|
3 years |
5.71% |
|
5 years |
7.51% |
Lucknow
Growth in prices (CAGR)
|
1 year |
6.41% |
|
3 years |
10.07% |
|
5 years |
13.1% |
Delhi
Growth in prices (CAGR)
|
1 year |
3.31% |
|
3 years |
4.94% |
|
5 years |
10.43% |
Ahmadabad
Growth in prices (CAGR)
|
1 year |
1.79% |
|
3 years |
8.04% |
|
5 years |
8.66% |
Kolkata
Growth in prices (CAGR)
|
1 year |
3.39% |
|
3 years |
5.35% |
|
5 years |
9.27% |
Chennai
Growth in prices (CAGR)
|
1 year |
13.78% |
|
3 years |
6.80% |
|
5 years |
7.21% |
Kanpur
Growth in prices (CAGR)
|
1 year |
6.57% |
|
3 years |
6.57% |
|
5 years |
11.29% |
Jaipur
Growth in prices (CAGR)
| 1 year | 2.28% |
| 3 years | 3.93% |
| 5 years | 3.72% |
Conclusion
In conclusion, I would say the real estate property market is on an uptrend! As there is a proliferation in the number of investors parking money in real estate, instead of other investment options…