Average Property Values In Top 7 Cities Appreciated At CAGR Of 13% In Last 2 Years

ANAROCK research added that for investors seeking to preserve and grow their wealth amidst inflationary pressures, real estate has emerged as a popular hedge against this dreaded but inevitable dynamic.

New Delhi: Housing Prices soared with 13 percent CAGR as Inflation moderated to 5.4 percent, a study by ANAROCK research has found.

The study said, "Average property values in the top -7 cities have appreciated at a CAGR of 13% in the last 2 financial years as CPI inflation moderated by 1.3% on an annual average basis to 5.4% at the end of FY24."

It added that for investors seeking to preserve and grow their wealth amidst inflationary pressures, real estate has emerged as a popular hedge against this dreaded but inevitable dynamic.

Shobhit Agarwal, MD & CEO – ANAROCK Capital, said after the 2019 elections, average residential prices across the top 7 cities have appreciated at a Compound Annual Growth Rate (CAGR) of 6% - rising from Rs 5,600/sq.ft. in June 2019 to Rs 7,550/sq.ft by the end of FY 2024. 

A similar trend was witnessed in relation to the 2014 elections. Average prices across the top 7 cities saw an annual rise of over 6% in 2014 when compared to the preceding year - from Rs 4,895/sq.ft in 2013 to Rs 5,168/sq.ft in 2014, he added.

Before the 2019 elections, average prices rose by a mere 1% annually, and remained rangebound during the tenure, he said.

The research found that between 2013-2020, the top 7 cities recorded a cumulative supply of 23.55 lakh units against a demand for 20.68 lakh units.

Gradually, demand rose in tandem with new supply. Available inventory peaked at approx. 8 lakh units by the end of 2016. However, following the pandemic, residential real estate saw rapid recover, leading to significant price growth that has outpaced general inflation.