Housing prices continue to witness 6% rise in Q3

Mumbai: Housing prices across the top eight cities in India (Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad) continue to head northwards at 6 per cent YoY amidst robust housing demand and quality launches by top developers. 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. Delhi-NCR saw the highest increase in residential prices at 14 per cent YoY, followed by Kolkata and Ahmedabad with 12 per cent and 11 per cent YoY increase respectively.

New launches have been on the rise since the beginning of the year as the market regains momentum after a hiatus, despite rising interest rates and input costs since the beginning of the year. Overall unsold inventory rose 3 per cent YoY. Owing to the spike in launches in the past few quarters, around 94 per cent of the unsold inventory in India is under construction. Majority of the cities saw a dip in unsold inventory, with Bengaluru witnessing the steepest decline of 14 per cent YoY, led by higher sales. Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, led by significant new launches.

Talking to Bizz Buzz, Ramesh Nair, Chief Executive Officer India & Managing Director, Market Development, Asia, Colliers, says, "After uncertainty in the past two years, 2022 has ushered in relative stability and recovery for the residential market across top eight cities. The rise in inflation and hike in input costs have put upward pressure on housing prices pan India. Several developers have launched projects and offered rebates during the festive period. While residential activities continue to remain strong, recessionary pressures may have an impact on the salaried class, who form a notable share in homebuying in the top Indian cities."

The aggregated sales of three-quarters of CY22 are 16 per cent higher than the aggregate similar three quarter's sales of CY 21. Despite increasing interest rates and marginal property prices, there is still parity between the prices and affordability; sales volumes are likely to stay strong. The year 2022 is slated to pose highest ever sales in the residential market in India, said Pankaj Kapoor, Managing Director, Liases Foras".

Delhi-NCR continues to witness highest price appreciation during Q3 2022, at 14 per cent YoY. 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 per cent YoY. Golf Course Road saw the highest price rise of 21per cent, followed by Ghaziabad.

The levels of unsold inventory in the city have dropped by 11 per cent YoY during Q3 2022. Unsold inventory rose 21 per cent YoY in MMR region, while housing prices continue to remain stable 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 per cent YoY in the region, while housing prices continue to remain range bound with a slight dip of 1 per cent on a quarterly basis. However, Western Suburbs (beyond Dahisar) saw the highest increase in prices at 10 per cent YoY followed by Panvel with 8 per cent increase YoY.

Bengaluru witnessed a steepest decline in unsold inventory, at 14 per cent YoY. While housing prices in Bengaluru increased 6 per cent YoY after remaining rangebound for the last two years, unsold inventory witnessed a sharp decline during Q3, dropping by 14 per cent YoY. Amidst high inclination towards homeownership and higher disposable income, the demand for large spaces and self-sustained properties is rising. During Q3, unsold inventory dropped 34 per cent compared with Q3 2019 levels.