BackResidential property prices up 4-7% on rise in input costs, demand rebound
Housing sales remained strong, seeing a 47% jump annually. A total of 88,230 units were sold across the top seven cities in Q3 2022, which is a 4% quarterly increase and 41% annual rise
PremiumNEW DELHI: Residential property prices across the top seven cities--Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Pune, Hyderabad, Chennai, Bengaluru, Kolkata--rose 4-7% between September 2021 and September 2022, according to data from Anarock Property Consultants.
This increase comes on the back of inflationary rise construction input costs due and demand comeback post Covid-19, Anarock said in its Q3 housing report.
Residential units in MMR (Mumbai and adjoining satellite towns) and Bengaluru saw the highest rise of 7%, closely followed by NCR and Hyderabad where property prices have increased by 6%.
Data for Q3 2022 and Q2 2022 shows that the rise in prices was marginal at 1-2%, sequentially.
New inventory addition has seen a notable jump of 45% since September 2021, with MMR, Bengaluru and Pune witnessing highest supply of 118%, 81% and 43%, respectively. “MMR saw approx. 36,000 units launched in Q3 2022 – an increase of approx. 21% over Q2 2022 and a massive 118% annual rise. Over 68% of the new supply in Q3 2022 was added in the ₹40 lakh to RS 2.5 crore budget segment," Anarock said in its statement.
On a quarterly basis, Pune and Hyderabad saw a decline of 11% and 2%, respectively, in new launches in Q3 from Q2. Kolkata and Chennai clocked highest growth in new launches of 124% and 62%, respectively, in Q3.
NCR saw a rise of 57% in new launches in Q3 2022 but on an annual basis, NCR clocked a 24% decline in inventory addition between Q3 2022 and Q3 2021. Chennai is another city to have witnessed a similar trend.
Cumulatively, available inventory in the top seven cities increased by 1% in Q3 over Q2 due to robust new supply in the current quarter, however, on an annual basis, available inventory declined by 4%, Anarock said.
“In terms of budget segments, 36% of the total new supply was launched in the mid-segment ( ₹40– 80 lakh), 28% in the premium segment ( ₹80 lakh - ₹1.5 Crore) while 18% each in the luxury (price range) segment and affordable (price range) segments," Anarock Q3 housing report said.
Housing sales remained strong, seeing a 47% jump annually. A total of 88,230 units were sold across the top seven cities in Q3 2022, which is a 4% quarterly increase and 41% annual rise, shows Anarock data.
“The momentum of both housing sales and new launches stayed strong in the top 7 cities in Q3 2022 despite major headwinds," said Anuj Puri, Chairman - ANAROCK Group.
“However, if inflation remains at elevated levels forcing RBI to aggressively increase interest rates, there might be some turbulence in the market. ANAROCK’s most recent Consumer Sentiment Survey finds that high inflation has majorly impacted the disposable incomes of at least 61% of respondents. The survey also found that housing sales may be impacted to some extent if home loan interest rates breach the 9.5% mark," Puri added.
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