Housing prices in the country’s top eight cities witnessed an 8 per cent year-on-year increase on consistent demand, according to CREDAI – Colliers - Liases Foras, Housing Price-Tracker Report Q1 2023.
Amidst robust housing demand and quality launches by leading developers, Delhi-NCR saw the highest increase in residential prices at 16 per cent YoY, followed by Kolkata and Bengaluru with 15 per cent and 14 per cent YoY increases, respectively.
As interest rates are expected to have peaked, a pause in the rising repo rate, paired with a healthy domestic economic outlook, will keep market sentiment upbeat, the report noted.
“Despite the rise in housing prices, which is primarily owing to rising raw material costs and consistent demand, we expect the strong momentum to continue, as consumers have shown a clear appetite for new, bigger houses with better amenities — especially in the post-pandemic era,” said CREDAI President Boman Irani.
The top eight cities continued to witness a rise in new launches, while the overall unsold inventory rose 12 per cent YoY, with about 95 per cent of the unsold units in the top cities under construction.
Hyderabad saw the highest jump in unsold inventory levels, at 38 per cent YoY. However, Delhi NCR, Bengaluru and Chennai 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 per cent, followed by Pune at 13 per cent.
Despite a 250-basis points increase in the RBI’s repo rate since May 2022, the residential sector in India remained resilient through 2022 and in Q1 2023. According to Vimal Nadar, Senior Director and Head of Research at Colliers India, residential real estate is anticipated to stay promising in 2023 as developers concentrate on offering appropriate supply at the right price and location.