Housing prices likely to gain further momentum in coming quarters

Despite being a traditionally weak quarter, the July-September period has seen good sales of residential properties. Around 1,20,280 units were sold during the period as compared to 88,230 units in the same period of last year. This was a sound 36 per cent annual sales growth. In the April-June period, housing prices in the top eight cities rose by eight per cent year-on-year

Housing prices are likely to stay firm in the coming months on the back of festive demand despite a high interest rate regime. Real estate consultancy firms and experts in the know said that the pricing trend seen in the last two quarters (April-September period) are expected to sustain in the coming quarters.

According to real estate consultancy firm ANAROCK, prices in the top seven cities rose in the double-digit during the July-September period on the back of strong sales across major cities.

“In the wake of rising input costs and the significant sales growth, average residential property prices across the top seven cities collectively registered double-digit yearly growth of 11 per cent - from Rs 6,105 per sq. ft. in Q3 2022 to around Rs 6,800 per sq. ft. in Q3 2023,” ANAROCK said.

Among the top seven cities, Hyderabad saw the highest jump in average prices of 18 per cent during this period. On a quarterly basis, average prices in these cities jumped up by five per cent.

In the April-June period, housing prices in the top eight cities rose by eight per cent year-on-year.

“Usually, the second half of the financial year is considered the best period for the real estate market. As the RBI has already maintained the status quo in the interest rate, it improves sentiment among home buyers. Coupled with rise in input prices for home materials, home prices are expected to stay firm in coming quarters,” said an official of a Bengaluru-headquartered mid-sized real estate firm.

Despite being a traditionally weak quarter, the July-September period has seen good sales of residential properties. Around 1,20,280 units were sold during the period as compared to 88,230 units in the same period of last year. This was a sound 36 per cent annual sales growth.

"Among the top seven cities, MMR (Mumbai Metropolitan Region) recorded the highest housing sales of about 38,500 units, followed by Pune with around 22,880 units," Anuj Puri, Chairman - ANAROCK Group- said. "Cumulatively, the two western cities accounted for 51 per cent of total sales seen across the top seven cities in Q3 2023. In terms of growth, MMR saw a 46 per cent annual rise in housing sales, while Pune saw a massive 63 per cent yearly jump," he added.

During festive seasons, sales of houses across major cities are likely to gain further momentum.

“Considering the overall present economic scenario, the momentum in housing sales and new launches across the top seven cities is expected to continue in the October-December quarter," Puri said.