Housing prices across the top eight cities, namely Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad, continue to grow at 6 per cent year-on-year during July-September of 2022 amidst robust housing demand and quality launches by top developers, a report said on Wednesday.Since the beginning of 2022, housing prices had been on the rise on the back of increased demand seen since last year, paired with rise in input prices, a joint report of CREDAI, Colliers India and Liases Foras said.Delhi-National Capital Region saw the highest increase in residential prices at 14 per cent y-o-y, followed by Kolkata and Ahmedabad with 12 per cent and 11 per cent increase, respectively, it said.The report said new launches had been on the rise since the beginning of the year as the market regained momentum after a hiatus, despite rising interest rates and input costs since the beginning of the year. Overall, unsold inventory rose 3 per cent y-o-y.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 report said, adding that majority of the cities saw a dip in unsold inventory, with Bengaluru witnessing the steepest decline of 14 per cent y-o-y, led by higher sales.Only Hyderabad, Mumbai Metropolitan Region (MMR) and Ahmedabad saw an increase in unsold inventory, led by significant new launches. The report said MMR continued to account for the highest share in unsold inventory at 37 per cent, followed by 13 per cent in Delhi- NCR and Pune each.”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 the first half (H1) of 2023,” stated Harsh Vardhan Patodia, President of CREDAI National.
The report said housing prices in Delhi-NCR have witnessed an uptick since September 2020. Delhi-NCR saw the highest increase in housing price across pan India at 14 per cent y-o-y. Golf Course Road saw the highest price rise of 21 per cent, followed by Ghaziabad whereas the unsold inventory in the city dropped 11 per cent y-o-y during Q3 2022.”After uncertainty in the past two years, 2022 has ushered in relative stability and recovery for the residential market across top eight cities. 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 for India and Managing Director, Market Development for Asia, Colliers.