Housing prices across the top eight cities in the country have increased by 6 per cent year-on-year in the third quarter of 2022, according to a report. The cities mentioned are Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad. Housing prices were up by 14 per cent in Delhi, 12 per cent in Kolkata, and 11 per cent in Ahmedabad.
Housing prices are rising on the back of increased demand since last year, along with a rise in input prices. Additionally, there have been more fresh launches this year, according to the Credai, Colliers, Liases Foras, Housing Price-Tracker Report 2022.
“The real estate market across the country has witnessed a K-shaped recovery in terms of prices, the consumer sentiment continues to stay robust as the pandemic reshaped the importance of owning a home rather than renting one. 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 the first half of 2023,” said Harsh Vardhan Patodia, President of CREDAI National.
According to the report, unsold inventory increased by 3 per cent year-on-year. Also, owing to the spike in launches in the past few quarters, around 94 per cent of the unsold inventory in India is under construction.
The cost of homes in Bengaluru increased by 6 per cent YoY during Q3. However, unsold inventory decreased by 14 per cent YoY in the third quarter of 2022 and by 34 per cent, when compared to Q3 2019. The city also saw an increased demand for large spaces and self-sustained properties.
Hyderabad, MMR, and Ahmedabad saw an increase in unsold inventory, with MMR at 37 per cent, and Delhi-NCR and Pune with 13 per cent each.
“The aggregated sales of three-quarters of CY22 are 16 per cent higher than the aggregate similar three-quarters sales of CY21. Despite the increasing interest rates and marginal property prices, there is still a parity between prices and affordability; sales volumes are likely to stay strong. The year 2022 is slated to pose the highest ever sales in the residential market in India,” said Pankaj Kapoor, Managing Director, Liases Foras”.