Demand in the housing segment has soared and so the prices have also gone up post the pandemic in the years 2021 and 2022. Another reason has been the branded developers have hiked their property prices due to high demand and the rising cost of construction.
The average property price in Hyderabad has reached INR 4,620 per sq. in 2022 while in Bengaluru the average property prices has reached INR 5,570 per sq. ft. this year in comparison to 2018. Both these cities have witness 10% increase in average property prices in the last five years.
Prashant Thakur, Sr. Director & Head – Research, ANAROCK Group said, “Property Prices in top seven cities are hovering around INR 6,150 per sq. ft on average currently. The demand has soared across the cities post the pandemic. Even the input costs of the developers have also spiked post the pandemic. It has caused price rise in 2021-22.”
Rental yield on the other hand has declined in 2020 in comparison to 2019 due to the pandemic as well as work from home and online schooling ethos. Still 2022 witnessed good rise in rental yields, breaching the pre-pandemic levels of 2019.
Currently the average prices in top seven cities are approx. INR 6,150 per sq. ft. If we compare this price with the last five years’ price it has increased 11% across in all these cities.