Indian Cities Which Might See A Spike in Property Prices In 2020
After growing at a blistering speed in the past, the price rally in some of India’s prime property markets halted in the wake of a prolonged period of slump. However, it won’t be completely right to say that property prices fell sharply in any of these markets. Rates largely remained unchanged in these markets in the last five years. However, prices in some markets continued to grow despite the many hiccups. In some cities, the growth momentum is set to continue in 2020 too. We have identified such markets for you and the reasons for their success.
Hyderabad: Political certainty has helped Hyderabad realty grow tremendously after the bifurcation of Andhra Pradesh in 2014. Now, this is the only major city in India where property prices have risen by 40 per cent since 2015. From being a town that earlier attracted buyers for its affordability, Hyderabad has now become a hub of luxury housing.
Currently, the average rate in the city is Rs 5,224 per square foot (psf). The upwards rally might continue in 2020 too.
Bangalore: As businesses increasingly move to this city, which has been thriving on technology revolution in India, the demand for residences in Bangalore continues to rise. Here property prices have moved up by 12 per cent in the past five years, an ongoing slowdown in the property markets notwithstanding. This trend is set to continue in 2020 and prices may push further up from the current Rs 5,205 psf.
Gurgaon: Growth-wise, the past five years haven’t been positive for the Millennium city where prices declined by 11 per cent in September 2019, to the levels seen in the same period in 2015. In this market, where property prices increased exponentially during the 2000s, affordability became a concern, impacting sales. Prices consequently started showing downward movement. With several affordable housing hubs around the city getting better connectivity, home sales numbers in Gurgaon are now seen improving. If the trend continues, prices in the city, which currently stand at Rs 4,868 psf might move up to reach levels seen in early 2015.