A revival in residential demand has moved housing prices up by five per cent across the top eight cities during Q2 2022, according to the latest report by CREDAI and Colliers.
It says residential prices surpassed pre-pandemic levels and are rising owing to increased demand and rising cost of construction material. In Q2 2022, the average housing rate in Delhi-NCR was ₹7,434 per square feet, representing a 10 per cent year-on-year increase. Ahmedabad and Hyderabad saw YoY increases of 9 per cent and 8 per cent, respectively.
“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, housing prices have increased 2-5 per cent 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 sales will continue to grow across segments from September, as we enter the festive season,” said Harsh Vardhan Patodia, President of CREDAI National.
Despite rising prices and an increase in new launches in the last few quarters, unsold inventory saw a dip in the majority of the cities. Bengaluru witnessed the steepest decline of 21 per cent YoY in its inventory overhang. While Hyderabad, Mumbai Metropolitan Region (MMR), and Ahmedabad saw an increase in unsold inventory due to new launches. MMR accounts for the highest share in unsold inventory at 36 per cent, followed by 14 per cent in Delhi-NCR and 13 per cent in Pune. The eight cities covered by the report are Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad.