Housing prices in Gurugram and Noida fell 7 per cent and 4 per cent, respectively in the last five years on demand slowdown, huge delays in execution of residential projects and many big developers turning bankrupt, according to News Corp-backed realty portal PropTiger.
It said the average housing prices in Gurugram, Haryana fell 7 per cent to Rs 5,236 per sq ft from the rates prevailing in March 2015. Noida in Uttar Pradesh witnessed a dip of 4 per cent to Rs 3,922 per sq ft.
However, Hyderabad saw the average value of apartments increase by 40 per cent to Rs 5,318 per square foot. In Mumbai, the average value rose 15 per cent to Rs 9,446 per sq ft, while in Bengaluru the average apartment value appreciated by 11 per cent to Rs 5,194 per sq ft.
Housing prices increase in Ahmedabad, Chennai, Kolkata and Pune were only marginal by 2-4 per cent.
PropTiger said property values in a majority of India's prime residential markets have seen dismal growth in the past five years, indicating that a prolonged demand slowdown has kept value appreciation under check.
"An ongoing demand slowdown in India's real estate market has kept price growth in check, as a result of which housing rates in most markets have shown only negligible growth," said Dhruv Agarwala, Group CEO of Housing.com, Makaan & PropTiger.com.
"If Hyderabad stands as an exception here, it has more to do with the fact that the base price in what is referred to as India's pharmaceutical capital was quite low during 2015. The state bifurcation also pushed prices upwards," he added.
Agarwala attributed price correction in key NCR markets Gurugram and Noida to delays in project completion by many real estate developers.
These two NCR markets have been at the receiving end of negative publicity because of large-scale project delays and instances of some mega players entering into insolvency resolution, the consultant said.
Recently, US-based News Corp and its Australian group firm REA made fresh investment of around USD 70 million (Rs 500 crore) in Singapore-based Elara Technologies that owns realty portals PropTiger, Makaan and Housing.com.
Elara Technologies is also backed by investors such as SoftBank, Accel and SAIF Partners. With this fresh funding, Elara has raised USD 175 million so far from investors.