Moneycontrol PRO
Open App

Housing prices up 5 percent YoY across 8 cities: Report

Delhi-NCR witnessed the highest price increase at 10% YoY

Representational image.

Representational image.

Residential real estate prices have increased by 5 percent across the top eight cities - Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad – even as  there has been a marginal decline in unsold inventory during Q2 2022, a report has said.

Delhi-NCR saw the highest increase in residential prices at 10 percent YoY, followed by Ahmedabad and Hyderabad with 9 percent and 8 percent YoY increase respectively, a report titled 'Housing Price-Tracker Report 2022' by Credai, Colliers India and data analytic firm Liases Foras have come out with.

Delhi NCR saw the highest increase in prices across the country at 10 percent with an average carpet price of Rs 7,434 per sq feet in Q2 2022.

Golf Course Road saw the highest price rise of 21 percent YoY followed by Noida Expressway. The entire region’s inventory dropped by 10 percent YoY in Q2 2022, as developers focused on offloading older projects. While overall unsold inventory is the lowest in three years, the majority of the unsold inventory is concentrated in Noida Extension and Greater Noida, followed by Ghaziabad.

Residential prices in Ahmedabad rose 9 per cent year-on-year (y-o-y) to Rs 5,927 per square foot during the April-June quarter of this calendar year. Bengaluru saw a 4 percent price appreciation to Rs 7,848 per square foot, while Chennai witnessed only one percent increase to Rs 7,129 per square foot.

Close

Housing prices in Hyderabad stood at Rs 9,218 per square feet in April-June, up 8 per cent from the year-ago period. Prices of residential properties in Kolkata too increased 8 per cent to Rs 6,362 per square foot.

MMR saw only a 1 percent rise in housing prices at Rs 19,677 per square foot. Pune reported a 5 percent rise in housing prices to Rs 7,681 per square foot during the June quarter.

As for unsold inventory, Bengaluru witnessed the steepest decline of 21 percent YoY in its inventory overhang, led by higher sales. Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, which was led by significant new launches. MMR still accounts for the highest share in unsold inventory at 36 percent, followed by 14 percent in Delhi- NCR and 13 percent in Pune.

MMR, which accounts for the highest unsold inventory at 36 percent share, saw a 14 percent rise in unsold inventory in the last year. The rise in unsold inventory was led by significant new launches in the city. Housing prices largely remained range-bound, with a slight rise of 1 percent YoY. However, Western suburbs (beyond Dahisar) saw the highest increase in prices at 12 percent YoY. Unsold inventory in Central suburb extension accounts for 26 percent, majority share in the price range of Rs 7,500 to 10,000 per sq ft.

“The central bank continues to increase repo rates to offset the impact of inflation and banks are expected to increase loan interest rates  including that of home loans. As captured in this report, the housing prices have increased between 2 – 5 percent across cities, as materials and labour costs continue to remain high. We may see a marginal dip in demand due to increasing interest rates, but I am confident that the sales will continue to grow across segments from September, as we enter the festive season,” said Harsh Vardhan Patodia, president of CREDAI National.

“Rising homeownership amongst millennials supported by higher disposable income and willingness to upgrade to larger spaces equipped with better amenities have sparked a sharp growth in housing demand in the last few quarters. Demand for self-sustained properties replete with best-in-class amenities has also been increasing post-pandemic. These have led to strong growth in housing sales in the last few quarters. Prices have also seen a 5 percent rise on a YoY basis,” he said.

RBI has increased the repo rate amidst inflationary pressures and banks have already begun increasing the lending rates. However, the upcoming festive season is likely to keep the market sentiment high resulting in higher sales.” said Ramesh Nair, Chief Executive Officer,  India and Managing Director, Market Development, Asia, Colliers.

“Price to remain range bound. With discounted EMI schemes, we see early signs of developers absorbing the impact of increasing interest rates. Sales volumes are likely to improve as we see growing new supply with festive offers,” said Pankaj Kapoor, Managing Director, Liases Foras.
Moneycontrol News
first published: Aug 16, 2022 12:46 pm
Sections
ISO 27001 - BSI Assurance Mark