Housing prices in Hyd rise 13% in Q1

Hyderabad The average housing prices in Hyderabad rise 13 per cent year-on-year (YoY) at an average price of Rs 10,530 per sq ft during April-June quarter (Q1) of FY 2023-24, says a joint report released by the CREDAI – Colliers - Liases Foras. According to their ‘Housing Price-Tracker Report’, the unsold inventory in the city surged up at 24 per cent YoY during Q1 FY24.

With growing demand for spacious dwellings, developers continue to launch high-end projects, which have pushed housing prices for under construction units northwards in the Hyderabad market. Led by a spurt in new project launches, particularly in the Southwest micro market, the city saw an increase in unsold inventory level.

Despite a rise in unsold inventory, the housing prices in Hyderabad have consistently shown a rise over the past few quarters. Similarly, the residential prices across the top eight cities in India increased 7 per cent YoY amid robust housing demand backed by continued positive homebuyer sentiment and stable interest rates.

Kolkata recorded the highest increase in the prices at 15 per cent YoY, followed by Delhi NCR with 14 per cent YoY increase in Q1 FY24. Fuelled by a continued desire for home ownership and stable interest rates, coupled with growth in disposable incomes, housing demand is poised for steady growth even amid unprecedented global economic headwinds.

Boman Irani, President of CREDAI National stated, “The ongoing momentum in quantum of sales across the country is a clear reflection of positive homebuyer sentiments and validates the conducive nature of the market. We’re also witnessing record breaking numbers due to the pent-up demand from Covid and despite the price rise, we expect this trend to continue for the rest of the fiscal year – on the back of a relatively stabilized repo rate and lending eco-system.”

“Over the last 10 quarters, there has been a consistent upward trend in housing prices across the country. While developers continue to grapple with the challenges of higher costs of construction, housing demand remains unwavered. Housing demand is likely to further accelerate in the next few quarters led by the upcoming festive season and continued preference for home ownership,” said, Peush Jain, MD, Occupier Services, Colliers India.

“Factors like improved infrastructure, enhanced connectivity, rising disposable income, and government incentives have fueled housing demand across Indian cities. While most cities saw double-digit price increases during Q2 2023, Delhi NCR is consistently seeing an uptick in housing prices for the past 12 quarters. Notably, the newly developed Dwarka Expressway and the upcoming 50 km 6-lane highway in Delhi NCR are expected to further drive demand in Gurugram, Ghaziabad and Noida,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.