Home prices move up in Hyderabad, Chennai

Among top Indian cities, Hyderabad, Chennai, Kolkata and Ahmedabad saw residential prices rising in the September quarter, while prices declined in other top cities. Globally, residential prices across the 150 cities increased by an average 10.6 per cent, the fastest since Q1 2005.

Home prices in Hyderabad grew 2.5 per cent year-on-year and saw the fastest appreciation among Indian cities, as per Knight Frank India. Chennai prices grew 2.2 per cent, Kolkata 1.5 per cent and Ahmedabad 0.4 per cent.

On the other hand, Mumbai saw residential prices declining by 1.8 per cent, Pune 1.5 per cent, New Delhi 0.7 per cent and Bengaluru 0.2 per cent.

"India has seen a strong demand revival being supported by government stimulants, increased household savings, as well as low interest rates. Pricing has played a key role in pushing up home sales, as they had, for most part of the last six quarters, remained attractive," said Shishir Baijal, chairman & managing director, Knight Frank India.

Going ahead, the pricing trend will depend on the future demand. "Factors like interest rates, impact of omicron and inflationary pressures will determine buyer sentiments. We hope that the government will continue to maintain its accommodative and positive status in maintaining the current economic environment to help maintain the sales momentum in the residential segment," he added.

In the September quarter of last year, all the cities, except Hyderabad, had posted a decline in residential prices. Hyderabad had then seen a growth of 3.7 per cent. Chennai, on the other hand, had seen the fastest decline of 6.9 per cent last year.

Residential prices across the 150 cities worldwide increased at an annual average of 10.6 per cent in the September quarter.