Realty Price Comparison for Indian Cities 2007-2014
According to National Housing Bank (NHB) index, Chennai has witnessed an extraordinary rise in property prices by 249% in the last seven years, and is rapidly becoming the country’s second-most expensive city after Mumbai. Not one of the other 26 cities in India could match the 20% price hike that Chennai exhibited in the last seven years.
Pune followed suit with a price hike of 132% in the same period, while Mumbai was close behind with a 129% growth in housing prices. The changing population pressures have a direct effect on housing property prices, which is the reason for the fluctuations in the Mumbai and Pune real estate market.
According to the last census data, Pune felt the strains of population growth with an increase of 30%, while the populations of Mumbai and Chennai increased at significantly lower rates of 4% and 8% respectively.
Contrary to this are the decreasing population rates shown by metropolitan cities, such as Hyderabad by 5%, while Bangalore registered a single digit fall to 7% during this period. However between 2007 and 2014, house prices have doubled for both Kolkata and Delhi. While most cities recorded a price rise of 50% in the last seven years, smaller cities like Kochi exhibited a decline in prices by 15%.
Reserve Bank of India’s revision and modification of norms for affordable housing have come at a perfect time, especially now that property prices have escalated by large margins. The incentives given to the construction industry should be extended to home buyers as well, so that both parties can together benefit from the new norms of the real estate sector.
Source: Mint
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