By Accommodation Times News Services
Bangalore has witnessed maximum appreciation of 41 per cent in the mid-income housing segment during the last three years, while Pune tops the list with an average increase of 39 per cent in the high-end properties among the country’s seven major cities.
In Delhi-NCR, housing prices rose by 22 per cent and 24 per cent in mid segment and high-end categories, respectively, over the last three years (June 2011 and June 2014), according to a report by global property consultant Cushman & Wakefield.
The report analyses the performance of the residential segment of seven major cities — Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Pune and Hyderabad — to rank the average capital value appreciation. “Mid-segment residential properties in Bengaluru market have seen the highest average capital values appreciation in the last 3 years
(H1 2011–H1 2014), while Pune recorded the highest average appreciation in the high-end properties in the same period,” C&W said in a statement.
The capital values of mid-segment housing have increased in the range of 14-41 per cent during the last three years, while those of high-end properties in the range of 16-39 per cent during the period under review.
In the mid segment, Bengaluru recorded the highest average appreciation of 41 per cent, followed by Pune at 28 per cent Chennai (27 per cent), Delhi-NCR (22 per cent) and Kolkata (17 per cent). Mumbai recorded an average capital values increase of 16 per cent while Hyderabad saw a rise of 14 per cent.
In high-end segment, Pune recorded the highest increase in capital values of 39 per cent, followed by Bengaluru at 37 per cent and Chennai 34 per cent. Mumbai and Delhi-NCR recorded identical average increase of 24 per cent, while Hyderabad remained last with an average increase of 16 per cent.
C&W said that North-west Bengaluru witnessed maximum capital value appreciation of 95 per cent, the highest among the top seven Indian cities, due to the launch of quality developments that garnered healthy demand due to their proximity to the international airport.
Commenting on the report, C&W Executive Director Residential Services Shveta Jain said: “Despite the disparity in levels of average appreciation in capital values in the past, it is heartening to see that against poorer economic sentiments, all markets have recorded capital appreciation.”
Jain said markets driven largely by end-users have recorded highest average increases in capital values, while investor driven markets such as Delhi-NCR and Mumbai have seen lower appreciation. “This is largely because of the fact that in the last few years due to factors such as slower economic growth, devaluation of the rupee against dollar and general unrest on account of factors such as inflation, slower rate of real estate development etc. Which has led more probable markets of Delhi-NCR and Mumbai to see a slower rate of appreciation,” Jain explained.