Mint Primer Urban slowdown: Will home prices come down, too?

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Subscribe to enjoy similar stories. Between 2016 and 2020, there was no rise in home prices due to the slowdown. It was only after the pandemic that sales picked up, as did prices.

Home prices have been rising continuously across all the seven major metros in recent years. Average price per sq. ft has risen by around 40.5% since 2021, says Anarock Property Consultants.

Among the top markets, National Capital Region (NCR), Bengaluru, and Hyderabad have seen the biggest increase in prices. Tier-II cities have also seen increased project launches and sustained price rise. Goa as a second home market has seen the sharpest increase.

India’s real estate sector is in the fourth year of a boom cycle. This momentum has led to consecutive peaks in sales and accelerated project launches, pushing up prices. With home sales increasing by 49% between 2022 and 2024, inventory overhang came down.

Developers gained confidence to launch high-end properties, as the luxury market rebounded. As in any boom cycle, nobody wants to build affordable homes. So, more project launches are happening in the premium or luxury categories, escalating property prices.

An increase in land, construction and labour costs has also impacted property prices. Multiple factors, including renewed investor confidence, homebuyer interest, the Dwarka Expressway and the planned Jewar airport have led to a rise in prices. The boost in home sales has also prompted developers to launch expensive homes.

Gurugram is the new luxury capital; Noida, Greater Noida, and Ghaziabad have also seen significant price movement. The ongoing residential bull run is expected to continue, which means prices will keep rising. With enough homebuyers, and the return of investors, sales