India’s Real Estate Boom: 88% Price Surge in 5 Years

India’s real estate sector has been experiencing an extraordinary surge over the past five years, with the average price of new housing projects across the top 10 cities increasing by a staggering 88%. This price jump, detailed by PropEquity, a real estate data analytics firm, highlights the rapid evolution of the market as developers and buyers grapple with rising costs in both premium and mid-segment housing.

The city that has seen the most dramatic increase is Gurugram, where the price per square foot has soared by 160%—from ₹7,500 in 2019 to ₹19,500 in 2024. This surge outpaces all other major cities, illustrating the intense demand for housing in this key commercial hub near the national capital. Following Gurugram, other cities such as Noida (146%), Bengaluru (98%), and Hyderabad (81%) also reported significant price hikes, reflecting the national trend of escalating property costs. While Gurugram and Noida continue to see substantial interest from investors and homebuyers, Mumbai recorded the lowest price increase among the top cities at just 37%, with the average price per square foot rising from ₹25,820 to ₹35,500. Despite this, Mumbai remains the costliest city, surpassing even Gurugram, with property prices continuing to rise due to its status as India’s financial capital.

In total, approximately 15,000 new projects—ranging from apartments and floors to villas—were launched across these cities. The data reveals how the pandemic and subsequent recovery have shaped the real estate landscape, with both urban expansion and rising demand in key markets driving prices upward. Though the rate of increase varies, the overall trend signals a robust and competitive real estate market in India, especially in cities with established infrastructure and proximity to business districts. However, this surge in prices also raises concerns about affordability for middle-class buyers and the sustainability of such growth, as more buyers may be priced out of the market.