New Delhi: Mid-segment residential properties witnessed the highest appreciation in Bangalore in the past three years, while in the high-end category the credit went to Pune, says a study.
As per the report by global real estate consultants, Cushman and Wakefield, mid-segment residential property prices almost doubled in the north-west part of Bangalore, while they were up nearly two-thirds in some areas of Pune.
The study spanned between first half (January-June) of 2011 and first half of 2014. In the mid-segment, Chennai with 27 percent, Delhi region with 22 percent and Kolkata with 17 percent, also saw some noteworthy increases, while Mumbai saw the second-lowest jump with 16 percent, following Hyderabad with 14 percent. In the high-end properties market, Pune recorded the highest increase in capital values of 39 percent while Bangalore recorded 37 percent average increase in capital values in the period between 2011 and 2014.
The high-end property segment in Chennai market recorded an average increase of 34 percent in capital values in the three-year period, while Mumbai and Delhi-NCR recorded identical average increase of 24 percent. Hyderabad with 16 percent remained at the last on the table for average increase in capital values over three years. "Despite the disparity in levels of average appreciation in capital values in the past, it is heartening to see that against poorer economic sentiments, all markets have recorded capital appreciation.
It is interesting to note that markets which are largely end user driven are also the ones to record highest average increases in capital values while investor driven markets such as Delhi-NCR and Mumbai have remained contained in appreciation received over the period," said Shveta Jain, executive director, Residential Services, Cushman & Wakefield. "This is largely because of the fact that in the last few years due to factors such as slower economic growth, devaluation of the Indian rupee against dollar and general unrest on account of factors such as inflation, slower rate of real estate development etc. which has led more probable markets of Delhi-NCR and Mumbai to see a slower rate of appreciation," Jain added. In the last three years, Bangalore witnessed the highest average capital value appreciation in the mid segment of the top seven Indian cities.
Chennai witnessed steady capital value appreciation in both mid and high-end segments during the period, while Hyderabad witnessed capital value appreciation of 14 percent in the mid segment and 16 percent in the high-end segment. The high-end segment in Kolkata witnessed average capital value appreciation of 26 percent in the last three years. Average capital values in Mumbai's mid segment increased 16 percent during the period and capital values in Delhi-NCR appreciated 22 percent in the mid segment and 24 percent in the high-end. Also, the residential segment in Pune witnessed high levels of capital value growth in both the mid and high-end segments.