Rising Housing Costs: Real Estate Prices Soar in India's Metro Cities

Year-on-year, housing prices have increased by 14.7% in the ongoing June quarter. Among the cities, Gurugram has witnessed the highest housing demand, followed by Bengaluru, Greater Noida, and New Delhi.

Real estate executives have noted a decline in housing supply, particularly in the affordable and mid-priced segments, despite the increased demand. Sudhir Pai, CEO at Magicbricks, highlights the mismatch between homebuyers' budgets and the prevailing residential prices.

The rental market in these cities has also seen a notable increase in prices, as reported by The Economic Times. Bengaluru, in particular, stands out as the most expensive Tier 1 city in India for residential rentals, with a soaring demand. Rental costs in various housing societies across Bengaluru have risen by 30% compared to pre-pandemic levels, according to Prashant Thakur, Senior Director and Head of Research at Anarock.

The surge in rental prices is attributed to the growing number of employees being asked to work from offices in India's top seven cities. This trend is observed in Mumbai, Pune, Delhi-NCR, and Hyderabad as well, where people are now paying more for the same properties they vacated during the pandemic.

Furthermore, the return of expatriates, global executives, and embassy personnel has contributed to the rise in luxury property rentals.

Overall, the housing market in India's metro cities is witnessing an increase in both property prices and rental costs, driven by factors such as high demand, limited supply, and changing work dynamics