Housing Prices Soar Amid Moderation
Real Estate

Housing Prices Soar Amid Moderation

Housing prices in India have experienced a significant surge, registering a 13% compound annual growth rate (CAGR), according to ANAROCK's recent report. This increase comes as inflation rates have moderated to 5.4%. Key factors driving this growth include a strong demand for residential properties, a stable economic environment, and favorable government policies. The real estate market's resilience can be attributed to an increasing urban population, rising disposable incomes, and a preference for homeownership. Additionally, developers have been focusing on affordable housing projects, which has expanded the buyer base.

Interest rates on home loans have also played a crucial role. With financial institutions offering competitive rates, the affordability of home loans has improved, encouraging more people to invest in real estate. The moderation in inflation has further supported this trend by stabilizing the cost of living and maintaining purchasing power.

The report highlights that metro cities have seen the most significant price hikes, reflecting their status as economic hubs with high demand for residential space. Cities like Mumbai, Delhi, and Bangalore are leading the charge, while tier-II cities are also catching up due to improved infrastructure and connectivity.

ANAROCK's analysis indicates that the trend is likely to continue as the economy grows and urbanization accelerates. However, the market must watch out for potential challenges such as regulatory changes, economic fluctuations, and supply chain disruptions.

Housing prices in India have experienced a significant surge, registering a 13% compound annual growth rate (CAGR), according to ANAROCK's recent report. This increase comes as inflation rates have moderated to 5.4%. Key factors driving this growth include a strong demand for residential properties, a stable economic environment, and favorable government policies. The real estate market's resilience can be attributed to an increasing urban population, rising disposable incomes, and a preference for homeownership. Additionally, developers have been focusing on affordable housing projects, which has expanded the buyer base. Interest rates on home loans have also played a crucial role. With financial institutions offering competitive rates, the affordability of home loans has improved, encouraging more people to invest in real estate. The moderation in inflation has further supported this trend by stabilizing the cost of living and maintaining purchasing power. The report highlights that metro cities have seen the most significant price hikes, reflecting their status as economic hubs with high demand for residential space. Cities like Mumbai, Delhi, and Bangalore are leading the charge, while tier-II cities are also catching up due to improved infrastructure and connectivity. ANAROCK's analysis indicates that the trend is likely to continue as the economy grows and urbanization accelerates. However, the market must watch out for potential challenges such as regulatory changes, economic fluctuations, and supply chain disruptions.

Next Story
Infrastructure Urban

Allcargo Gati Strengthens Doddaballapura’s Industrial Growth

Doddaballapura, once renowned for its silk sarees, has evolved into a major industrial hub, housing an Apparel Park and diverse manufacturing units producing textiles, paints, and machinery. The region’s strategic location and robust infrastructure have attracted national and international companies, boosting Karnataka’s economy.For the past four years, Allcargo Gati has been a key logistics partner, ensuring efficient distribution of goods across India. With a structured supply chain strategy—65 per ent to the north, 15-20 per cent west, 10-15 per cent east, and 5 per cent south—the c..

Next Story
Infrastructure Transport

Kolkata Metro to Suspend Green Line Services on March 8-9

The Kolkata Metro Railway has announced a complete traffic block on the East West Metro Corridor (Green Line) on March 8 and 9 for testing the Communication-Based Train Control (CBTC) system. Services will also be partially disrupted on the evening of March 7 and the morning of March 10. The Green Line, India’s first underwater metro tunnel and home to the country’s deepest metro shaft, runs from Howrah Maidan to Salt Lake Sector V. This line’s first phase was inaugurated in 2020 by then Railway Minister Piyush Goyal. Additionally, the Kolkata Metro recently introduced a paper ..

Next Story
Infrastructure Urban

India and Nepal Sign MoU to Strengthen WASH Sector Cooperation

India and Nepal signed a Memorandum of Understanding (MoU) on March 3, 2025, to enhance cooperation in the Water, Sanitation, and Hygiene (WASH) sector, including waste management. The signing ceremony took place at Sushma Swaraj Bhawan in New Delhi, attended by India’s Union Minister of Jal Shakti, CR Patil, and Nepal’s Minister of Water Supply, Pradeep Yadav. The agreement aims to foster collaboration between the two countries to improve access to clean drinking water and sanitation. It outlines key areas of cooperation such as capacity-building programs for Nepali personnel, techno..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?