Mumbai and Delhi have long been the uncrowned kings of property prices hike in the past. They have given home owners the best value through property appreciation for over a decade. Slowly, this trend is changing; making way for IT led cities like Bangalore and Pune to reign the property appreciation market.
In a recent study shared by Cushman and Wakefield exclusively with The Times Of India, Bangalore came a winner in mid level housing projects appreciation at a cool 41% as opposed to Mumbai at 23% and Delhi at 25%.
Around the same time, in premium housing segment, Pune recorded a whopping growth of 41% whereas Bangalore followed at a close 39%.
We think that markets like Bangalore and Pune are driven by the customers who are in the mid to high level income groups. Most of this group is made up of professionals working in the IT industry. Not surprisingly, if one were to just follow the growth trajectory of the IT led companies in the last 3 years, the results are astounding!
There is a distinct correlation between the growth of IT sector and appreciation of property market in any given city
People from the IT sector show more aspiration for international level housing, owing to their purchasing power and more exposure to international countries and their culture
Professional growth translates directly into higher purchasing power for the IT crowd
Increasing knowledge about sustainable and green real estate projects in the IT led crowd is beginning to translate into major real estate companies bringing in the green label to their properties
NRIs are seen investing more in Bangalore and Pune markets where capital required is lower compared to Mumbai or Delhi and appreciation is much higher in return
While the period from 2008 to 2011 saw property prices remaining stagnant in Pune and Bangalore, the subsequent years have been kinder. Now Mumbai and Delhi rank lower than Pune and Bangalore. This study averages out the disparity between appreciations of each suburb to give you a holistic picture.