Bengaluru, Hyderabad See Explosive Growth in Property Prices

Like a tidal wave smashing across major cities, India's real estate industry is expanding dramatically. Compared to the same period last year, the average price of properties sold in the top seven cities in the first half of this fiscal year jumped by 23 percent to an astounding Rs 1.23 crore. Luxury residences have emerged as the new gold standard as private consumption and disposable income grow. This increasing wave is vividly depicted in the analysis by Anarock Group, which demonstrates how the epidemic has only increased demand for upmarket real estate.

Despite a minor decline in the quantity of units sold, over 2.27 lakh residences valued at Rs 2.79 lakh crore were sold in these cities in the first half of FY2025, marking a significant increase in sales value. The increasing demand for luxury real estate is evident from this statistics. The move towards high-priced purchases is highlighted by the 18% increase in total sales value, despite a 3% decline in overall unit sales. Due to the region's thriving luxury market, Delhi-NCR led the charge with the largest increase in average property prices, up 56 percent from Rs 93 lakh to Rs 1.45 crore.

In this competition, Hyderabad and Bengaluru were not far behind. The average ticket price in Hyderabad increased by 37%, from Rs 84 lakh to Rs 1.15 crore, while the average ticket price in Bengaluru increased by 44%, from Rs 84 lakh to Rs 1.21 crore. Due to their rapid growth, these cities are increasingly popular places to invest in luxury real estate. With only little variations in the average ticket size, Mumbai's market held steady in spite of these rises.

The rise in sales of luxury residences heralds a new age in Indian real estate, one in which wealthy people are driving demand for lavish lifestyles in addition to homes. For the rest of us, it appears that the market for luxury homes is booming—if only our finances could keep up!