Since the beginning of 2022, housing prices have been on the rise on the back of increased demand seen since last year, paired with rise in input prices.
Delhi-NCR witnessed the highest increase in residential real estate prices with an increase of 14% year-on-year to Rs 7,741 per square feet for July-September 2022. However, Mumbai Metropolitan Region (MMR) continued to remain the costliest market in the country with a rate of Rs 19,485 per square feet, which has remained unchanged from last year.
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Housing prices across the top eight cities in India—Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru and Ahmedabad continue to head northwards at 6% y-o-y amidst robust housing demand and quality launches by top developers, according to a joint report by Credai, Colliers and Liases Foras. Delhi-NCR was followed by Kolkata and Ahmedabad with 12% and 11% y-o-y increase respectively.
Since the beginning of 2022, housing prices have been on the rise on the back of increased demand seen since last year, paired with rise in input prices.
New launches have been on the rise since the beginning of the year as the market regains momentum after a hiatus, despite rising interest rates and input costs since the beginning of the year. Overall, unsold inventory rose 3% y-o-y.
Owing to the spike in launches in the past few quarters, around 94% of the unsold inventory in India is under construction. Majority of the cities saw a dip in unsold inventory, with Bengaluru witnessing the steepest decline of 14% y-o-y, led by higher sales. Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, led by significant new launches.
MMR continues to account for the highest share in unsold inventory at 37%, followed by 13% in Delhi- NCR and Pune each.
“The Real Estate market across the country has witnessed a K-shaped recovery in terms of prices, the consumer sentiment has continued to stay robust as the pandemic reshaped the importance of owning a home. With the festive period expected to continue till the end of this year, we can expect sales to be northbound,” said Harsh Vardhan Patodia, president, Credai. However, he said the price rise is expected to continue owing to the robust demand.
According to Ramesh Nair, chief executive officer, India and managing director (market development), Asia for Colliers, while residential activities continue to remain strong, recessionary pressures may have an impact on the salaried class.
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“The aggregated sales of three-quarters of CY22 are 16% higher than the aggregate similar three quarter sales of CY21. Despite increasing interest rates and marginal property prices, there is still a parity between the prices and affordability; sales volumes are likely to stay strong,” said Pankaj Kapoor, managing director, Liases Foras.
