Average home prices in Gurugram up 76% in 2 years to touch US$ 174.53 (Rs. 14,650) psf

Amidst growing residential demand in Gurugram, average property prices surged by 76% over 2 years, reaching US$ 174.53 (Rs. 14,650) per square foot between July and September 2024, according to Magicbricks’ latest PropIndex Report. Despite a moderate 9.9% increase in residential demand quarter on quarter, supply grew by 18.3% during the same period, driven by new listings resulting from heightened market activity and project launches. Magicbricks noted that completing key infrastructure projects, particularly the Dwarka Expressway, enhances Gurugram's appeal, attracting demand in newer sectors with improved connectivity to Delhi. As prices in established areas remain high, these emerging sectors are becoming increasingly attractive, offering relatively affordable options while maintaining proximity to vital business hubs. The report highlights a 12.9% quarter-on-quarter price increase for ready-to-move apartments, now averaging US$ 163.56 (Rs. 13,729) per square foot. In comparison, prices for under-construction apartments rose by 17.3% to US$ 192.76 (Rs. 16,180) per square foot.

Demand for 3 BHK units remains strong, dominating 66% of searches, with average prices rising by 21.6% quarter on quarter to US$ 173.94 (Rs. 14,600) per square foot. Builder floors average US$ 151.30 (Rs. 12,700) per square foot, multistorey apartments at US$ 157.26 (Rs. 13,200) per square foot, residential houses at US$ 191.81 (Rs. 16,100) per square foot, and luxurious villas at US$ 304.99 (Rs. 25,600) per square foot. The most sought-after areas include Dwarka Expressway, New Gurgaon, and Golf Course Extension. According to the PropWorth tool, average residential rates are US$ 176.32 (Rs. 14,800) per square foot in Dwarka Expressway, Rs. 12,600 per square foot in New Gurgaon, and US$ 202.53 (Rs. 17,000) per square foot in Golf Course Extension. In another report titled "Housing Affordability in Major Indian Cities," Magicbricks indicated that the Mumbai Metropolitan Area and Delhi are the least affordable investment options. While household income in the top 10 cities grew at a compound annual growth rate (CAGR) of 5.4% from 2020 to 2024, property prices increased by 9.3% CAGR, impacting the purchasing power of residents. India's property price to annual household income ratio (P/I ratio) rose from 6.6 in 2020 to 7.5 in 2024, surpassing the globally accepted benchmark of 5. The Mumbai Metropolitan Area (14.3) and Delhi (10.1) are the least affordable cities for property investment, while Chennai, Kolkata, and Ahmedabad (5) are among the most affordable options in 2024. Additionally, the EMI-to-monthly income ratio in India increased from 46% in 2020 to 61% in 2024, reflecting the growing financial burden on homebuyers and raising concerns about the economic conditions, especially in metropolitan areas.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.