Homes in Metros Witness Price Rise of Over 50 Percent

Bangalore: Housing prices in Indian metros have rose over 50 percent in last 4 years. Major metros like Mumbai, Gurgaon and Bangalore have witnessed an average price rise of 66 percent, 52 percent and 46 percent respectively, over the past few years, according to property consultant Jones Lang LaSalle (JLL), reports Economic Times.

With the increase in input costs, limited availability of land and demand supply disparity, the property prices have gone vertical in metros. However, increase in input costs is a major factor behind the hike in property prices as the cost has shot upto 30-40 percent in the last four years. “On the demand side, affordability is getting better as salaries have increased by at least 10-12 percent per annum in this period helping home buyers take a decision,” said Niranjan Hiranandani, co-founder & chairman of Mumbai-based Hiranandani Group.

Another reason behind the price appreciation is that, earlier people invested in stocks which have turned uncertain with the time passing by and so, investors have shifted to asset classes like gold and real estate. It is to be believed that real asset classes offer better returns over time and so it caught investors fancy, making real estate prices high.

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