Delhi-NCR sees highest annual increase in housing price among 8 cities in Jul-Sep: Report

Representative image.

Delhi NCR's property prices rose 14 percent in the third quarter of FY23, the highest amongst the top eight cities at an average of Rs 7741 per square feet, according to a joint report by CREDAI, Colliers India and Liases Foras.

Bengaluru recorded the largest decrease in unsold inventory, but other cities, including Ahmedabad and Hyderabad, saw an increase in unsold inventory as a result of new launches.

"During Q3 2022, overall housing prices in India increased 6 percentage year-on-year (YoY)", the report mentioned.

According to the data, the property prices in Kolkata increased by 12 percent YoY between July and September of this year, to Rs 6,594 per square foot.

Average prices rose by 11 percentage in Ahmedabad to Rs 6,077 per square foot, while rates increased by 9 percentage in Pune to Rs 8,013 per square foot.

Hyderabad's property prices increased 8 percentage to Rs 9,266 per square foot. "However, due to limited availability, prices of ready units rose 26 percentage YoY in Hyderabad," the report mentioned. In Bengaluru, prices increased 6percentage to Rs 8,035 per square foot (sq ft).

Housing costs in Chennai and the Mumbai Metropolitan Region (MMR) held steady at Rs 7,222 and Rs 19,485 per square foot, respectively. "The upcoming development along Mumbai-Ahmedabad High-Speed Rail (MAHSR) corridor is likely to push residential demand upwards in the next few quarters," the report mentioned.

"Since the beginning of 2022, housing prices have been on the rise on the back of increased demand seen since last year, paired with a rise in input prices," the report said.

Colliers India chief executing officer (CEO) Ramesh Nair said the rise in inflation and hike in input costs have put upward pressure on housing prices pan India.

In Q3 2022, Pan India unsold inventory increased 3 percentage YoY. "About 94 percentage of the total unsold inventories across all the 8 cities in India are under construction units," the report added.

Despite increasing demand for buying homes, unsold inventory in Bengaluru decreased by 14 percentage YoY. When compared to Q3 2019, unsold inventory fell 34 percentage.

In Delhi-NCR, unsold inventory decreased 11 percentage YoY in Q3 2022 as a result of recovering housing demand. About 46percentage of the unsold units fall within the price range of Rs 2,500 – Rs 5,000 per sq ft, of which Noida Extension holds the majority of units.

In Kolkata, the unsold inventory dropped 10 percentage YoY. Kolkata East accounts for the highest unsold inventory, of which 49 percentage falls in Rs 5,000–Rs 7,500 per sq ft price range.

MMR witnessed a rise in unsold inventory for the fifth quarter in a row, led by significant new launches in the city. The majority of the unsold units fall in the price range of Rs 7,500-Rs 10,000 per sq ft out of which 55 percentage are in Central Suburb extension.