BackDelhi-NCR sees highest increase in housing price across India
Housing prices appreciated by 6 percent across eight cities during July-September 2022, compared to the same quarter last year.
PremiumResidential prices in Delhi-NCR witnessed highest annual price increase of 14 per cent during July-September at an average ₹7,741 per square feet, according to a joint report by CREDAI, Colliers India and Liases Foras on 16 November.
As per the report, “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 percent YoY. Golf Course Road saw the highest price rise of 21 percent, followed by Ghaziabad. The unsold inventory in the city dropped by 11 percent YoY during Q3 2022."
The report also showed that housing prices appreciated by 6 percent across eight cities during July-September 2022, compared with the same quarter last year on rising rates of key construction materials.
CREDAI is the apex body for real estate developers in India, while Colliers India is a real estate consultant and Liases Foras is a data research firm.
"Since the beginning of 2022, housing prices have been on the rise on the back of increased demand seen since last year, paired with rise in input prices," the report said.
As per the data, after Delhi, the average housing prices in Kolkata rose 12 percent YoY to ₹6,594 per square feet in the July-September period of this calendar year.
Gujarat's Ahmedabad city saw an increase of 11 percent in average prices to ₹6,077 per square feet, while Pune witnessed a 9 per cent rise in rates to ₹8,013 per square feet.
The average housing prices in Hyderabad were up 8 per cent to ₹9,266 per square feet. The rates appreciated 6 per cent in Bengaluru to ₹8,035 per square feet.
The housing prices remained stable in Chennai and Mumbai Metropolitan Region (MMR) at ₹7,222 per square feet and ₹19,485 per square feet.
As per the report, MMR, with the rise in significant new launches, witnessed a rise in unsold inventory for the fifth quarter in a row. "Unsold inventory rose 21 percent YoY in the region, while housing prices continue to remain rangebound with a slight dip of 1 percent on a quarterly basis. However, Western Suburbs (beyond Dahisar) saw the highest increase in prices at 10 percent YoY followed by Panvel with 8 percent increase YoY, the report said.
CREDAI National President Harsh Vardhan Patodia 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."
He expected 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 robust demand," Patodia said.
Colliers India CEO Ramesh Nair said the rise in inflation and hike in input costs have put upward pressure on housing prices pan India.
"While residential activities continue to remain strong, recessionary pressures may have an impact on the salaried class, who form a notable share in home buying in the top Indian cities," he said.
On the housing demand, Pankaj Kapoor, Managing Director of Liases Foras, said the aggregated sales of three-quarters of this calendar year have been 16 per cent higher than the year-ago period.
"Despite increasing interest rates and marginal property prices, there is still a parity between the prices and affordability; sales volumes are likely to stay strong. The year 2022 is slated to pose the highest ever sales in the residential market in India," he said.
Liases Foras, founded in 1998, is the non brokerage real estate research company in India. Data and science form the core of its services, ranging from providing market intelligence and risk advisory to lenders and mortgage companies to providing development advice, and valuations to developers, funds, banks, and corporations.
The Confederation of Real Estate Developers & Associations of India (CREDAI) represents over 13,000 developers across 221 city chapters in 21 states.
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