Residential prices continue to see an increase at 6% YoY across the top eight cities – Delhi NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad, amidst robust housing demand and quality launches by top developers, according to a joint report titled ‘Housing Price-Tracker Report 2022’ by CREDAI, Colliers India and Liases Foras. Delhi NCR saw the highest price appreciation at 14% YoY during Q3 2022, followed by Kolkata and Ahmedabad with 12% and 11% YoY increase respectively, the report said.
Since the start of 2022, housing prices have risen due to increased demand and rise in input prices. New residential launches have seen an uptick as the market regained momentum, despite rising interest rates and input costs. According to the report, unsold inventory rose 3% YoY. Owing to the growth in property launches in the past few quarters, around 94% of the unsold inventory in India are under construction. Majority of the cities saw a drop in unsold inventory. Bengaluru saw a decline of 14% YoY, led by higher sales. Driven by new launches, the property markets of Hyderabad, MMR and Ahmedabad have seen an increase in unsold inventory. MMR continues to account for the highest share in unsold inventory at 37%, followed by 13% in Delhi- NCR and Pune each. During Q3 2022, unsold inventory dropped 34% compared with Q3 2019 levels.
Harsh Vardhan Patodia, president of CREDAI national said, “The real estate market across the country has witnessed a K-shaped recovery in terms of prices, the consumer sentiment has continued to stay robust as the pandemic reshaped the importance of owning a home rather than renting one. With the festive period expected to continue till the end of this year, we can expect sales to be northbound and the number of unsold inventories to decline as well. 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 H1 of 2023”.
“The rise in inflation and hike in input costs have put upward pressure on housing prices pan India. Several developers have launched projects and offered rebates during the festive period. While residential activities continue to remain strong, recessionary pressures may have an impact on the salaried class, who form a notable share in homebuying in the top Indian cities,” said Ramesh Nair, chief executive officer India, and managing director, market development Asia, Colliers.
The aggregated sales of three quarters of CY 22 are 16% higher than the aggregate similar three quatres sales of CY 21. Despite rising interest rates and marginal property prices, there is still a parity between the prices and affordability; sales volumes are expected to remain strong, Pankaj Kapoor, managing director, Liases Foras, said.
There has been an uptick in housing prices in Delhi-NCR since September 2020. The market saw the highest rise in housing prices across pan India at 14% YoY. Golf Course Road saw the highest price rise of 21%, followed by Ghaziabad. The unsold inventory in the city dropped by 11% YoY during Q3 2022.
With a rise in new launches, MMR witnessed an increase in unsold inventory for the fifth quarter in a row. Unsold inventory in the region saw a growth of 21% YoY, while housing prices continue to remain rangebound with a slight dip of 1% on a quarterly basis. However, Western Suburbs (beyond Dahisar) saw the highest increase in prices at 10% YoY followed by Panvel with 8% increase YoY.
