Housing prices rise 8% YoY in Q1CY2023: Report

Housing prices across the top eight cities increased 8 percent year on year (YoY) in Q1CY2023

Housing prices across the top eight cities increased 8 percent year on year (YoY) in Q1 of Calendar Year 2023, amidst a strong demand and consistent launches by top developers.

Delhi-NCR (National Capital Region) saw the highest YoY increase -- at 16 percent -- followed by Kolkata and Bengaluru, with 15 percent and 14 percent YoY increase, respectively, a CREDAI-Colliers-Liases Foras Housing Price- Tracker Report Q12023 has said.

The top eight cities are Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, MMR (Mumbai Metropolitan Region), and Pune.

Housing prices in Delhi-NCR were up 16 percent YoY-- the highest among the top eight cities.

In fact, Delhi-NCR has been witnessing a steady rise for the last 11 quarters, the report said.

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Notably, Dwarka Expressway witnessed a significant price rise at 59 percent YoY, largely led by the opening of the Central Peripheral Road and the loop connecting the expressway with NH 8.

Prices in Golf Course Road surged 42 percent YoY. The revised prices in the Golf Course Road micro market now account for the highest property value in the region, the report noted.

Unsold inventory in Delhi-NCR dropped by 38 percent, compared to the pre-pandemic levels -- the highest among the top eight cities, indicating healthy market dynamics.

This region witnessed the steepest decline in unsold inventory at 9 percent YoY during Q1FY24, signalling positive consumer buying sentiment.

Housing prices in MMR largely remained stable during Q1CY2023. At the same time, peripheral micro markets like Panvel witnessed a 9 percent increase YoY, followed by the western suburbs, at 6.4 percent. The region continued to account for the highest share in unsold units on account of new project launches.

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Overall unsold inventory

Across the top eight cities, unsold inventory rose 12 percent YoY, overall. With a spurt in new launches, about 95 percent of the unsold units in the top cities were under construction. Hyderabad saw the highest jump in unsold inventory levels, at 38 percent YoY – the highest among the top eight cities.

This was due to the spurt in new project launches, particularly in the Northwest and Southwest regions of the city (Gachibowli, Kondapur, Nanakramaguda and Kokapet). Overall, housing prices in the city surged 13 percent YoY during Q1CY2023.

Delhi NCR, Bengaluru and Chennai also saw a dip in unsold inventory, on the back of a significant rise in sales. MMR continued to account for the maximum share of unsold inventory at 37 percent, followed by Pune at 13 percent.

“FY23 witnessed record new launches and sales across major cities in India. The trend will likely continue, and as sales and supply will likely grow, the price rise will become moderate,” said Pankaj Kapoor, Managing Director, Liases Foras.

“Despite the rise in housing prices, primarily owing to the rising raw material costs and 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,” said CREDAI president Boman Irani.

“Aided by an increased preference for home ownership, relative affordability, and quality supply, the sector has remained resilient, offsetting the challenges posed by higher interest rates amidst global headwinds. Amidst this upswing, housing prices in India witnessed an 8 percent YoY rise during the first quarter of 2023,” said Peush Jain, Managing Director, Occupier Services at Colliers India.