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Amid the robust housing demand and quality launches by top developers, housing prices across the top-eight cities in India continue to head northwards at 6 per cent YoY. The Delhi-NCR region saw the highest increase in residential prices at 14 per cent YoY, followed by Kolkata and Ahmedabad with 12 per cent and 11 per cent YoY increase, respectively, according to a report.
The top-eight cities are Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad. “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,” according to the joint report by CREDAI-Colliers-Liases Foras.
It added that 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 per cent YoY. Owing to the spike in launches in the past few quarters, around 94 per cent 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 per cent YoY, 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 per cent, followed by 13 per cent in Delhi-NCR and Pune each,” the report said.
Harsh Vardhan Patodia, president of CREDAI National, said, “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 rather than renting one. With the festive period expected to continue till the end of this year, we can expect sales to be northbound and the number of unsold inventories to decline as well.”
He added that while there has been a rise in housing prices in line with the global inflationary trends, the market can expect the prices to continue to rise owing to the robust demand. The industry has embarked towards solidity after a let-up due to the pandemic and should be able to stabilise in H1 of 2023.
Ramesh Nair, chief executive officer (India) and managing director (market development-Asia) at Colliers, said, “After uncertainty in the past two years, 2022 has ushered in relative stability and recovery for the residential market across top eight cities. The rise in inflation and hike in input costs have put upward pressure on housing prices pan India. Several developers have launched projects and offered rebates during the festive period.”
He added that while residential activities continue to remain strong, recessionary pressures may have an impact on the salaried class, who form a notable share in homebuying in the top Indian cities.
Pankaj Kapoor, managing director of Liases Foras, said, “The aggregated sales of three-quarters of CY22 are 16 per cent higher than the aggregate similar three quatres sales of CY 21. 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. The year 2022 is slated to pose highest ever sales in the residential market in India.”
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