Housing prices up 5% in April-June in 8 cities on resurgence in demand

Realtors’ apex body CREDAI, real estate consultant Colliers India and data analytics firm Liaise Foras have come out with ‘Housing Price-Tracker Report 2022’ for eight major cities – Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata. Bangalore, Hyderabad, Pune and Ahmedabad

Delhi-NCR saw the highest increase in housing prices by 10 per cent year-on-year, followed by Ahmedabad and Hyderabad at 9 per cent and 8 per cent year-on-year, respectively.

The report said, “During Q2 (April-June) 2022, housing prices in India have surpassed pre-pandemic levels, reflecting strong demand and supply that aligns well with demand. Is.”

As per the data, housing prices in Ahmedabad grew by 9 percent year-on-year (YoY) 5,927 per sq ft during the April-June quarter of this calendar year. Bengaluru sees 4 percent price hike 7,848 per sq ft, while Chennai saw an increase of only one per cent 7,129 per sq ft. Housing rates in Hyderabad stood at 9,218 per sq ft in April-June, up 8 per cent from the year-ago period.

Prices of residential properties in Kolkata also increased by 8 percent 6,362 per sq ft. MMR, the most expensive real estate market, sees only 1 per cent rise in housing prices 19,677 per sq ft.

Delhi-NCR property market sees highest annual growth of 10 per cent in housing prices 7,434 per sq ft. Pune registers 5 percent increase in housing prices 7,681 per sq ft during the June quarter. Prices are based on carpet area.

Further, despite rising prices and a rise in new launches over the past few quarters, most cities witnessed a decline in unsold inventory.

The report shows that Bengaluru saw the biggest drop of 21 per cent in its inventory overhang, led by higher sales.

Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, led by significant new launches. According to the report, MMR is still the highest at 36 per cent in unsold inventory, followed by Delhi-NCR at 14 per cent and Pune at 13 per cent.

In the report, Pankaj Kapur, Managing Director, LiaiseForce said that the prices will remain “range bound”.

“To stay price capped. With the discounted EMI schemes, we see that developers are absorbing the impact of the increase in interest rates. The sales volume is likely to improve as we are seeing an increase in new supplies along with festive offers,” said Kapoor.

CREDAI National President Harsh Vardhan Patodia attributed the rise in housing prices to key construction materials as well as increase in labor wage rates, apart from some strong fundamentals.

He said the demand could be marginally impacted due to hike in interest rates on home loans but sales would continue to rise from September.

Ramesh Nair, chief executive officer, Colliers India, said the market sentiment is likely to remain high in the upcoming festive season, resulting in higher sales despite the interest rate hike.

In Delhi-NCR, the report said Golf Course Road in Gurugram saw the highest year-on-year growth of 21 per cent, followed by Noida Expressway.

“Housing prices in Ahmedabad are highest in 3 years,” the report said, adding that Gandhinagar suburb saw the highest growth of 13 per cent.

Central Chennai saw the biggest drop of around 13 per cent in prices while West Poonamallee saw the highest increase of 13 per cent.

Kolkata South-West and Howrah saw the highest increase of 13 per cent in prices.

In the MMR market, the western suburbs (beyond Dahisar) saw the highest increase of 12 per cent year-on-year in prices.

Kothrud and Baner registered the maximum increase in housing prices of around 9-10 per cent in the Pune market, the report said.

“Housing prices have not increased much in the last decade. Builders are operating on very low margins. With the rise in prices of major construction materials, real estate developers have no option but to burden the customers. However, Pankaj Pal, Group Executive Director, AIPL said, big and credible players are seeing better demand than others, hence they are earning a premium in the market.

Established in 1999, the Confederation of Real Estate Developers Association of India (CREDAI) is the apex body of private real estate developers in India. It represents over 13,000 developers in 221 city chapters in 21 states.

(with inputs from PTI)

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