June 14 : Housing prices across the top eight cities in India increased 8 percent YoY amidst strong demand and consistent quality launches by top developers, data revealed by CREDAI on Wednesday.
Delhi-NCR saw the highest increase in residential prices at 16 pc YoY, followed by Kolkata and Bengaluru with 15 pc and 14 pc increase respectively.
Despite rising interest rates, housing prices have been on the rise led by consistent demand seen since last year.
As the interest rates are now expected to have peaked, a pause in the rising repo rate paired with healthy domestic economic outlook will keep the market sentiment upbeat, the report added.
“Owing to a conducive buying eco-system, homebuyers’ sentiment has been quite positive for the past few quarters. This is also validated by the sheer volume of sales that we have been witnessing in the recent past, especially in Tier 1 cities across India. Despite the rise in housing prices, which is primarily owing to rising raw material costs and this consistent demand, we expect the strong momentum to continue as consumers have shown a clear appetite to buy new, bigger houses with better amenities – especially in the post pandemic era. There is also a greater thrust on Green Development projects, with homebuyers inclined towards sustainable houses that are beneficial not just to the environment but also financially, in the long term.” CREDAI president Boman Irani said in a statement.
The top eight cities continued to witness a rise in new launches, as developers planned to tap the rising demand, owing to which the overall unsold inventory rose 12 pc YoY. With a spurt in new launches, about 95 pc of the unsold units in the top cities were under- construction. Hyderabad saw the highest jump in unsold inventory levels, at 38 pc YoY. At the same time Delhi NCR, Bengaluru and Chennai saw a dip in unsold inventory, on the back of significant rise in sales. MMR continued to account for the maximum share in unsold inventory at 37 pc, followed by Pune at 13 pc.
Top eight cities include- Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, MMR, and Pune.
“The residential real estate in India bounced back post the pandemic and continues its strong momentum since last year. Aided by increased preference for home ownership, relative affordability, quality supply, the sector has remained resilient, offsetting the challenges posed by higher interest rates amidst global headwinds. Given the positive market fundamentals, both end-users & investors can find their sweet spot in this sturdy market. Amidst this upswing, housing prices in India witnessed an 8% YoY rise during the first quarter of 2023.,” said managing director, Occupier Services at Colliers India Piush Jain.