Average property values in India’s national capital region showed a whopping 49 per cent appreciation in the past one year as demand for luxury homes continued to sustain. This comes amid an escalation in the cost of building materials and labour, a new report by digital real estate transaction and advisory platform PropTiger.com shows. According to the report, titled Real Insight: Residential Annual Round-up 2024 by PropTiger.com, property prices increased across cities during the October-December period of 2024, albeit in varying degrees. While price growth slowed in the southern housing market of Hyderabad after nearly a decade of sharp rise, all other cities covered in the analysis showed double-digit annual appreciation. Cities covered in the analysis are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad & Faridabad), Mumbai Metropolitan Region (Mumbai, Navi Mumbai & Thane) and Pune. “High-net-worth Individuals deploying money in Delhi-NCR — this region is home to over 10 recently-listed start-ups — has kept the growth momentum going for this coveted residential market as developers prioritise premium offerings to affordable homes. This is the single biggest reason why home sales in key contributors like Gurugram (144 per cent increase Y-o-Y), Greater Noida (54 per cent increase Y-o-Y) and Noida (3 per cent increase Y-o-Y) showed annual rise in sales even though pan-India numbers showed 26 per cent year-on-year dip,” the company said in a statement. Property prices in India’s financial capital Mumbai rose by an average 18 per cent Y-o-Y because of similar factors, the report said. Home to India’s biggest business stalwarts, Bollywood stars and sports celebrities, Mumbai is the most unaffordable housing market in the world’s most populous country, it added. “No doubt, this kind of price growth is indicative of underlying demand, growth prospects and a positive buyer sentiment. However, cost pressure might further affordability concerns in a country where a large part of the population relies on government subsidies for house purchases. Amid hardening inflation and slowing growth, the government must launch policy measures that take care of this crucial aspect to promote affordable housing. Positive tweaks in taxation laws in the upcoming Budget and rate cuts by the RBI could go a long way in ensuring greater affordability for India’s burgeoning Middle Class,” said Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com.