Delhi’s Defence Colony has emerged as the best residential destination in an India metro city recording a whopping 777% or about 8 times growth in capital values between 2005 and 2015, according to a report by property listings portal CommonFloor.com.
The capital values for a standard apartment in Defence Colony stood at an average of Rs 3,200 per sq ft in 2005. Today the average rate in the area is Rs 28,090 per sq ft, according to CommonFloor Real Insights.
Vikhroli in Mumbai comes a close second, with price of an average flat rising from Rs 2,250 per sq ft in 2005 to Rs 18,000 per sq ft at present, a growth of 700%.
Other cities/town have posted more than 400% rise in home value appreciation include Guindy in Chennai at 678%, followed by Banjara Hills in Hyderabad at 578%, Benson Town in Bangalore at 495% and Viman Nagar in Pune registering a 467% growth in average home price.
“Most of these localities are preferred by well-heeled buyers not only because of high prices but because of the status attached to these localities,” said Vikas Malpani, co-founder & head, CommonFloor Groups.
“Residential prices appreciated by 30-40% every year in the 2005-2009 period, which if compounded might have led to a 5-7 times growth in these areas,” said Mudassir Zaidi, national director, residential agency, Knight Frank India, adding,
“Also early stage areas like Viman Nagar in Pune grew in demand due to expansion needs, supported by good infrastructure.”
Benson Town in Bangalore at present has home ticket prices ranging from Rs 6,600 sq ft to Rs 12,200 per sq ft, followed by Guindy in Chennai at Rs 7,000-9,350 per sq ft, Viman Nagar in Pune at Rs 6,500-9,280 per sq ft and Banjara Hills in Hyderabad at Rs 4,800-7,500 per sq ft.
“Most of these localities do not have much new supply coming in but are still actively transacted localities,” said Malpani.