Deciphering the Complexities: Understanding the Market Value of Properties in India

Real estate, as one of the most globally recognized sectors, plays a pivotal role in shaping India’s economic landscape. Comprising four sub-sectors – housing, retail, hospitality, and commercial – the Indian real estate sector has witnessed exceptional growth in recent times, fueled by a surge in demand for both office and residential spaces. Notably, real estate stands as the second largest source of employment in India, following agriculture, underscoring its significance in the country’s socio-economic fabric.

When you think about buying a house, lots of questions pop up. Some are about safety and convenience, like how close the property is to schools and hospitals. But there are also important questions about money, like how much the property will be worth in the future. And if you’re thinking about investing in property, these questions become even more important. You might wonder how much the property will go up in value or where to invest your money wisely without making any hasty decisions.

  • Here are some more questions that might come to mind:

  • What factors affect the value of a property?

  • How do I know if a property is a good investment?

  • Are there any risks involved in buying property?

  • What should I look for when buying a house?

If you find yourself grappling with similar queries or seeking to unravel the intricacies of property market valuation and its influencing factors, then this blog is tailored to meet your needs.

  • Indian Market Size

    Let’s start by looking at how big the Indian market really is and what that means for property values. According to a report, by 2040, the real estate market in India is projected to soar to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019. Furthermore, as per IBPE, the real estate sector in India is anticipated to achieve a market size of US$ 1 trillion by 2030, a significant increase from US$ 200 billion in 2021. Additionally, it is expected to contribute 13% to the country’s GDP by 2025.

    This exponential growth in the Indian real estate market signifies a substantial increase in property values. As the market expands, property prices are likely to rise, presenting lucrative opportunities for investors and homeowners.

    As promising as the market size sounds, it also comes with complexities involved in determining accurate and updated valuations for sellers, buyers, and investors.

  • Complexities In Determining Market Value:

    1. Market Volatility

    2. Regional Variations

    3. Regulatory Changes

    4. Economic Factors

    5. Supply and Demand Dynamics

    6. Property Condition

    7. Market Sentiment

  • Factors Influencing Property Valuation:

    When it comes to property valuation in India, several key factors play a pivotal role in determining market value of a property. Understanding these factors is crucial for making informed decisions in the real estate market.

    1. Location: The location of a property is paramount. Whether it’s proximity to schools, hospitals, or transportation hubs, the right location can significantly impact property value. It’s often said in real estate sales: “Location, location, location.”

    2. Size: The size of a property matters. Larger properties tend to appreciate more over time, offering greater potential for long-term investment returns.

    3. Amenities: Lifestyle amenities have become increasingly important, especially in the wake of the COVID-19 pandemic. Homebuyers are now seeking properties with basic amenities that enhance their quality of life.

    4. Condition: The condition of a property can greatly influence its market value. Well-maintained properties often command higher prices, while those in poor condition may see depreciation over time.

    5. Demand-Supply Dynamics: Understanding demand-supply dynamics is essential. A property in high demand and low supply is likely to see greater appreciation in value.

  • Methods Of Property Valuation:

    In property valuation, several methods are employed to determine the potential value of a property. Let us explore the different approaches commonly used in India:

    1. Sales Comparison Approach:

      This method involves comparing the property being valued with similar properties that have recently been sold in the same locality.

      • For example, suppose you are valuing a three-bedroom apartment in Mumbai. You would compare it with similar apartments in the same neighborhood that have recently sold for similar prices.

    2. Income Capitalization Approach:

      The income capitalization approach evaluates the property’s value based on its income-generating potential.

      • For instance, consider a commercial property in Pune that generates rental income of ₹1,00,000 per month. By applying a capitalization rate of 8%, you can estimate its value to be ₹1,50,00,000 (₹1,00,000 / 0.08).

    3. Cost Approach:

      The cost approach determines the property’s value by estimating the cost of replacing or reproducing it.

      • For example, if you are valuing a newly constructed villa in Bangalore, you would calculate the cost of land acquisition, construction, and improvements, adjusted for depreciation.

    By understanding how each method works and its inherent strengths and weaknesses, property owners, investors, and developers can make more informed decisions when assessing property values in India.

  • Role Of Location and Neighborhood:

    As mentioned earlier, location plays a pivotal role in property value appreciation. The saying goes: “Location, location, location” – and for good reason. Let us delve into how factors such as proximity to urban centers, transportation hubs, schools, healthcare facilities, and commercial zones influence property valuations.

    Let us understand the role of location through examples.

    1. Proximity to Urban Centers:

      • Apartments in Pune’s Hinjewadi IT hub command premium prices due to accessibility to major companies and amenities.

    2. Access to Transportation Hubs:

      • Residential developments near Greater Noida’s upcoming metro station see increased demand, driving property values upward.

    3. Presence of Schools and Healthcare Facilities:

      • Suburban Mumbai neighborhoods with renowned schools and healthcare centers attract families, boosting property values.

    4. Commercial Hubs and Amenities:

      • Bangalore’s tech parks and shopping malls create strong demand for properties, leading to appreciation in market values.

  • Regulatory Framework and Legal Considerations:

    Regulation and legal frameworks provided by the government play a crucial role in determining the market value of real estate. One such landmark regulation in India is the Real Estate (Regulation and Development) Act (RERA). Enacted to bring transparency and accountability to the real estate sector, RERA has significantly influenced market values.

  • Impact of RERA on Real Estate Market Value:

    Implementation of the Real Estate (Regulation and Development) Act (RERA) in India has had a significant impact on the real estate market value.

    Here’s how

    1. Increased Transparency: RERA mandates developers to register their projects and provide accurate information about the project status, timeline, and specifications.

    2. Improved Quality Standards: RERA requires developers to adhere to stringent quality standards and timelines for project completion.

    Overall, RERA has brought about significant positive changes in the Indian real estate market by promoting transparency, accountability, and consumer protection. These factors have collectively contributed to the enhancement of market values for properties that comply with RERA regulations.


Understanding the factors influencing market value, such as location, property valuation methods, complexities, and regulatory frameworks, empowers you to navigate the real estate market with confidence. By grasping these nuances, investing and buying properties becomes more accessible. Seeking professional guidance and conducting thorough due diligence ensures accurate valuation, paving the way for informed decisions.


Augmented Reality in Real Estate: Revolutionizing Market Trends in 2024

Augmented Reality (AR) has emerged as a groundbreaking technology with transformative implications across various industries. In particular, the real estate sector has witnessed a significant paradigm shift with the integration of AR solutions. As we delve into 2024, the influence of AR on real estate market trends continues to evolve, reshaping how properties are marketed, experienced, and personalized. A reliable source confirms that 67% of homebuyers express high satisfaction with virtual tours. AR empowers buyers to take charge of their property exploration, thereby enhancing confidence and streamlining the home search process. As we anticipate developments in 2024, the smooth incorporation of augmented Reality into real estate endeavors foresees a future characterized by heightened immersion and efficacy, where buyers play an active role in sculpting their journey through property exploration.

  1. What is Augmented Reality?

    Augmented Reality blends digital elements with the physical world, offering an enriched and interactive experience. In real estate, AR applications overlay virtual information onto physical properties, allowing buyers to visualize spaces more vividly. This technology enhances property exploration, enabling clients to envision potential modifications and configurations with remarkable accuracy. For real estate professionals, AR streamlines the showcasing process and fosters deeper client engagement, ultimately expediting the sales cycle.

    As per Wikipedia, Augmented Reality changes how one perceives the existing real-world environment, while virtual Reality entirely substitutes the user’s real-world surroundings with a simulated one. Additionally, augmented Reality is often used interchangeably with mixed Reality, and there’s also shared terminology with extended Reality and computer-mediated Reality.

  2. The Rise of Virtual Property Tours:

    Virtual property tours have surged in popularity, propelled by augmented Reality in the real estate industry. This trend took a high, especially during the pandemic. Potential buyers preferred first to check virtual property tours rather than directly visiting the site. This helped them get a fair idea of the site, as normal pictures only do justice sometimes. Since the pandemic, the trend has become a mandate. Through AR-enabled platforms, prospective buyers can embark on immersive property tours from the comfort of their homes. These virtual experiences offer unparalleled convenience and accessibility, accommodating the fast-paced lifestyles of modern consumers. By providing detailed and interactive walkthroughs, AR-driven tours facilitate informed decision-making, minimizing the need for physical visits and expediting the sales process.

  3. Personalized Property Customization:

    AR technology empowers buyers with personalized property customization capabilities. Innovative AR tools allow clients to visualize design options and modifications in real time, fostering a deeper connection with prospective properties. From adjusting room layouts to experimenting with interior décor, AR facilitates a tailored exploration experience that resonates with individual preferences. This level of customization enhances buyer satisfaction and elevates overall engagement, driving greater interest in listed properties.

  4. AR-Enabled Property Marketing:

    With the advancement in technology, Augmented Reality and real estate go hand-in-hand. AR has revolutionized property marketing and advertising strategies, offering dynamic and interactive content experiences. By integrating AR elements into marketing campaigns, real estate professionals can captivate audiences and differentiate their listings in a crowded market. From interactive 3D property showcases to augmented reality walkthroughs, AR-enhanced content captures attention and drives higher engagement levels. These immersive experiences leave a lasting impression on potential buyers, increasing the likelihood of conversion.

  5. Enhanced Real Estate Education and Training:

    AR is reshaping real estate education and professional training programs, providing immersive learning experiences for industry professionals. Through AR simulations and interactive modules, aspiring real estate agents gain practical insights into property showcasing, negotiation, and client interactions. Additionally, AR facilitates continuous learning and skills development for established professionals, keeping them abreast of industry advancements and best practices.

    Real estate professionals can gain a competitive advantage through the implementation of augmented Reality (AR), which transforms property listings into interactive experiences. As reported in a Hindustan Times article, virtual property tours enabled by AR foster stronger connections with potential buyers, resulting in a notable 40% surge in listing clicks, amplified website traffic, and, ultimately, heightened sales. Furthermore, as per the real estate trends, properties equipped with virtual tours attract 49% more qualified leads, thus boosting visibility and positioning amidst stiff market competition.

  6. Overcoming Challenges and Adopting Best Practices:

    Implementing AR technology in real estate comes with its share of challenges, including technical complexities and adoption barriers. However, in 2024, these challenges will be resolved as the technology develops. Overcoming these hurdles is essential for harnessing the full potential of AR-driven proptech solutions. Real estate professionals can mitigate challenges by investing in user-friendly AR platforms, providing comprehensive training and support, and fostering a culture of innovation within their organizations. By embracing best practices and strategic planning, stakeholders can maximize the benefits of AR integration and stay ahead of the curve.

  7. Forecasting Market Trends for 2024:

    As we look ahead to 2024, AR-powered real estate technology is poised for continued growth and innovation. According to forecasts, the adoption of AR applications, platforms, and services within the industry is expected to surge, driven by increasing demand for immersive property experiences. Real estate professionals must anticipate emerging trends and capitalize on AR opportunities to remain competitive in the evolving market. By leveraging AR technology effectively, they can enhance customer engagement, streamline operations, and drive real estate sales.


Augmented Reality represents a game-changer in the real estate industry, revolutionizing how properties are marketed, experienced, and customized. As we navigate the real estate market trends in 2024, staying attuned to evolving AR trends and technologies is paramount for success. By embracing AR-driven innovations, real estate professionals can elevate their practices, deliver unparalleled value to clients, and stay ahead of the competition. 

In this era of digital transformation, real estate firms are integrating AR into their processes. This gave rise to the term ‘PropTech,’ which means the use of information technology (IT) to help individuals and companies research, buy, sell, and manage real estate efficiently. Beyondwalls is one such proptech and real estate marketing agency, which is at the forefront of pioneering advanced solutions, facilitating a seamless convergence of technology and real estate excellence.

Real Estate Sales

Understanding Consumer Psychology and Pricing Elasticity in Real Estate

Real estate majorly revolves around the location of the property, and pricing has generally been the key factor. However, it’s crucial to consider another significant aspect, which is consumer psychology. A detailed understanding of the consumer psychology influencing pricing elasticity is essential, as real estate reflects the overall health of the economy.

For example, in 2022, the demand for 3 BHK homes was high because the economy, especially the tech sector, was thriving. Young professionals, around 28 years old, earning between 30 to 40 lakhs were investing a major part of their income in homes, cars, and travel. Homes were a priority, symbolizing status and stability. Fast forward to 2023, the demand for 3 BHKs dropped by more than half. Despite still earning 40 lakhs, individuals became cautious due to news of layoffs and economic uncertainty. Understanding the consumer’s thought process is now crucial when planning or pricing projects.

To illustrate this, let’s look at PCMC and the surrounding localities of PMC, representing West Pune’s real estate trajectory. Analyzing registrations from Sep-Oct 2022 and comparing them with 2023, we observe a significant decline in real estate sales in previously popular areas like Wakad, Balewadi, Rahatni, and Thergaon. In contrast, Tathwade, Punawale, and Ravet have experienced an upswing, possibly influenced by a mix of inventory and increasing prices. Interestingly, Hinjewadi has defied the trend, with volumes increasing despite rising prices. This data emphasizes the need to adapt strategies based on consumer behavior and market dynamics.

Real Estate Project-Wise Analysis: Key Metrics and Trends

Project Transaction (Sept-Oct ’23) Project Features/Sales Strategy Average APR Micro Market
GK Aarcon 369 Affordable Segment, Nearing Possession, Compact Homes 5100 Punawale
Kolte Patil – Life Republic 174 Smaller Sizes, Township Experience, Higher AOP & Marketing Costs 5300 Marunji
Unique K Town 84 Majority 2 BHKs 5132 Kiwale
Gini Vivante 77 Majority 2 BHKs & Compact 3 BHKs, 17 Acre Township 5173 Kiwale
Mangalam Melizma 69 Majority 2 BHKs & Compact 3 BHKs & Local AOPs 4710 Kiwale
Vivanta Yashada Windsong 61 Mid to Premium Segment, yet Majority 2 BHKs Sold 5950 Ravet
Jhamtani Ace Atmosphere 56 Mid to Premium Segment, yet Majority 2 BHKs Sold 5775 Aundh-Ravet BRTS Road
Kolte Patil Little Earth 53 Only 2 BHKs Sold with few compact 3 BHKs, Township Style Layout, Higher AOP & Marketing Costs 5012 Mamurdi
Shri Om Manglam Chaitanya 52 Only 2 BHKs Sold 4733 Kiwale
Jhamtani Ace Abode 45 Mid to Premium Segment, yet Majority 2 BHKs Sold 4790 Kiwale
Kohinoor Westview Reserve 44 Higher AOP, Higher Marketing Costs, Celeb Tie-Ups 6170 Tathawade
Lodha Hinjewadi 44 Brand Pull, AOP, & Operational Costs are higher 7600 Hinjewadi PH1
VTP Earth 1 44 Higher AOP & Marketing Cost, High Marketing Cost 7200 Mahalunge
Sai Bliss (Punavale) 41 Affordable, Nearing Possession 5100 Punawale
Kohinoor Coral 39 Affordable & Nearing or Ready, Small Carpet Sizes 5400 Hinjewadi PH3
Pebbles Greenfields 37 Higher AOPs & Sizes a= controlled of 2 & 3 BHKs 6750 Tathawade
Aishwaryam Insignia 35 Affordable & Small Carpet Sizes 5300 Aishwaryam Insignia
Kohinoor Famville 32 Higher AOP, Higher Marketing Costs, Celeb Tie-Ups, Etc 5780 Hinjewadi PH2
Nirman Astropolis 32 Premium Segment 6600 Aundh-Ravet BRTS Road
Mahindra Happinest Tathawade 30 National Brand, Smaller Sizes, 1 & 2 BHK, 470-680 sq.ft 6126 Tathawade
Pegasus Megapolis Mystic 27 Township Layout, Larger 2 & 3 BHKs, NRI Tie-Ups, Higher AOPs & Referrals 5821 Hinjewadi PH3
Rohan Nidita 26 Hinjewadi PH1, Brokerage driven, controlled marketing cost 6800 Hinjewadi PH1
Tulip Infinity Avana 24 2, 3 & 4 BHKs. Optimal sizing larger layout, high brokerage, good referral 7300 Aundh-Ravet BRTS Road
Shapoorji Pallonji Sensorium 23 Brand Pull, AOP, & Marketing Costs are higher 7490 Maan Road
Mihir Amara 22 Location Pricing advantage, spillover from Baner and Balewadi 6770 Wakad
Roshan Milestone 21 Affordable Segment with Compact Homes 4000 Punawale
Unique K Shire 21 Optimal Sizes & Larger layout gets Wakad spillover 5700 Punawale
Pegasus Megapolis Serenity 20 Only Compact 2 BHKs sold, Township Layout, Higher AOPs 5530 Hinjewadi PH3
Pharande Puneville 20 Large Layout & Pricing optimal, gets Wakad spillover due to location 5600 Punawale
Shree Sonigara Signature Ritz 20 Large Carpets, Higher brokerages 7150 Aundh-Ravet BRTS Road
Pride Purple Park Titan 19 Brand, Larger planned development, Higher Brokerages 6770 Hinjewadi PH1
Krisala 41 Zillenia 18 Decent 2 BHK & Compact 3 BHK, Higher Marketing Costs & AOPs 5216 Punawale

Types of Buyers and Location Preferences

  1. PCMC Buyers Preferred Locations:

    • PCMC Buyers preferred location Encompass crossing a highway.
    • Wakad
    • Ravet
    • Mamurdi

    Migrant Buyers Preferred Locations:

    • Hinjewadi
  2. Affordable Segment Bubble:

    • Punawale
    • Tathawade
    • Ravet

Factors Influencing Consumer’s Buying Preferences

  1. Affordability

    The shift in demand towards Punawale, Tathawade, and Ravet indicates a preference for more affordable housing options. Consumers are becoming increasingly conscious of their budgets, especially in times of economic uncertainty.

  2. Inventory Mix

    Locations experiencing an upswing, like Tathwade and Kiwale, are likely driven by a well-balanced inventory mix, offering a variety of 2 BHKs and compact 3 BHKs.

  3. Brand Pull

    Despite higher costs, in certain areas like Hinjewadi continue to attract buyers due to brand pull. Projects like Lodha Hinjewadi and VTP Earth 1 showcase the influence of a strong brand presence.

  4. Marketing Strategies

    Higher marketing costs and tie-ups with celebrities are observed in projects like Kohinoor Westview Reserve, indicating the significance of effective real estate marketing strategies in influencing buyer decisions.

  5. Location Advantage

    Spillover effects from neighbouring areas contribute to the success of projects like Mihir Amara and Pharande Puneville. Buyers are drawn to locations with pricing advantages and proximity to established neighborhoods.

Pricing Elasticity Insights

  1. Compact Homes Trend

    The data reveals a trend towards compact homes, driven by factors like affordability and optimal sizing. Projects like Unique K Town and Sai Bliss exemplify the demand for more manageable living spaces.

  2. Township Experience Appeal

    Developments with a township experience continue to attract buyers, emphasizing the enduring appeal of holistic living environments.

  3. Shift in Volume

    The normalized carpet to saleable ratio and Average Per sq.ft. Rate (APR) calculations help identify shifts in volume and pricing trends, offering valuable insights for developers and investors.


Understanding consumer psychology and pricing elasticity in real estate requires a sophisticated approach. By considering the type of buyer, location preferences, and various influencing factors, developers can adapt their strategies to meet the evolving consumer demands and market dynamics. The data-driven analysis depicted here serves as a guide for stakeholders navigating the ever-changing real estate landscape in West Pune.