The data of resale/secondary market prices across 21 key areas in the five cities compiled by Jones Lang LaSalle shows that the prices rose by up to 90 per cent between 2011 and 2014, with the only exception of Cuffe Parade that witnessed a decline in prices by 8 per cent from Rs 60,000 per sq ft in 2011 to Rs 55,000 per sq ft in 2014.
While the affordable and the medium segments have not seen such price rise, experts say that the low supply and high demand for the luxury segment is the key reason for this movement. In Mumbai, the biggest rise was seen in Mahalaxmi area where the prices have gone up by 57 per cent for the high networth individual (HNI) category.
In Mumbai, with the central business district shifting to BKC for all practical purposes, clients who would previously not have considered any options other than Malabar Hill or Nepean Sea Road are now evaluating newer areas like Worli, Bandra-BKC and Mahalaxmi as alternatives, said Om Ahuja, CEO, residential services, JLL India.
In Delhi the three areas Lutyens zone, Shantiniketan and Gold Links saw rise in the property prices of 60, 80 and 87 per cent, respectively, over the three year period between 2011 and 2014. Experts say that individuals with budgets ranging between Rs 50 crore and Rs 300 crore are not flexible about their choice for property purchase and they look for a place in Lutyens Delhi, Gold Links, Shantiniketan and Vasant Vihar.
Chennai was another major market that saw a significant rise in the real estate prices for the HNI segment and the prices in the Boat Club, Rutland Gate and Poes Garden areas rose between 59 per cent and 76 per cent. The prices for the segment even saw a noticeable increase in Kolkata and Bangalore. The South of EM Bypass area in Kolkata witnessed the biggest rise of 90 per cent over the last three years.
Experts feel that while the ultra-luxury segment may continue to witness the rise in prices on account of low supply and high demand in the areas preferred by them, the medium segment may still take some time on price revival.
The economic activity has yet to begin and companies have not yet announced their investment and hiring plans. Once that begins we will see a rise in prices in the medium segment too, said Ahuja. Places like Noida, Greater Noida, Gurgaon in the NCR, over the last few years witnessed weak demand leading to a rise in the unsold inventory.