NEW DELHI: Residential real estate prices have risen continuously since 2013, and in the last two years, appreciated at a CAGR of 13% while CPI inflation moderated by 1.3% on an annual average basis to 5.4% at the end of FY24, according to Anarock.
Shobhit Agarwal, MD & CEO, ANAROCK Capital, said, “After the 2019 elections, average residential prices across the top seven cities have appreciated at a compound annual growth rate (CAGR) of 6% – rising from Rs 5,600 per sq ft in June 2019 to Rs 7,550 per sq ft by the end of FY24. A similar trend was witnessed in relation to the 2014 elections. Average prices across the top seven cities saw an annual rise of over 6% in 2014 when compared to the preceding year – from Rs 4,895 per sq ft in 2013 to Rs 5,168/sq.ft in 2014.”
In the last decade, there were periods when the supply of real estate exceeded demand, resulting in stable price growth that kept pace with inflation in the pre-pandemic era. Between 2013-2020, the top seven 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 recovery, leading to significant price growth that has outpaced general inflation, according to Anarock.
