Delhi-NCR saw the highest increase in residential prices at 16% year-on-year, followed by Kolkata and Bengaluru with 15% and 14% increase, respectively.
Bengaluru, NFAPost: Housing prices across India’s top eight cities- Delhi NCR, Pune, Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata and Mumbai Metropolitan region- have risen 8% on year in the first quarter of 2023 amidst strong housing demand and launches by top developers, according to a price tracker report prepared jointly by Credai, Colliers and Liases Foras.
Delhi-NCR saw the highest increase in residential prices at 16% year-on-year, followed by Kolkata and Bengaluru with 15% and 14% increase, respectively.
Pan India residential prices Q1 2023 (in INR/sq ft) provided by Liases Foras, Colliers.
All the prices are based on carpet area
Despite rising interest rates, housing prices have been on the rise led by consistent demand seen since last year. As the interest rates are now expected to have peaked, a pause in the rising repo rate paired with healthy domestic economic outlook will keep the market sentiment upbeat, noted the report.
The top eight cities continued to witness a rise in new launches, as developers planned to tap the rising demand, owing to which the overall unsold inventory rose 12% YoY.
With a spurt in new launches, about 95% of the unsold units in the top cities were under- construction.
Hyderabad saw the highest jump in unsold inventory levels, at 38% YoY. At the same time Delhi NCR, Bengaluru and Chennai saw a dip in unsold inventory, on the back of significant rise in sales.
MMR continued to account for the maximum share in unsold inventory at 37%, followed by Pune at 13%.
Colliers India Senior Director and Head of Research Vimal Nadar said despite a 250-basis point increase in the RBI’s repo rate since May 2022, the residential sector in India remained resilient through 2022 & in Q1 2023.
“The resultant increase in home loan interest rates, did not defer demand, as the momentum of sales continued unabated. With developers focusing on delivering relevant supply at the right price & location, residential real estate is expected to remain promising in 2023,” said Colliers India Senior Director and Head of Research Vimal Nadar.
Housing prices in Delhi-NCR has seen a steady rise since the last eleven quarters. Notably, Dwarka Expressway witnessed a significant price rise at 59% on year, largely led by opening of Central Peripheral Road and the loop connecting Dwarka expressway with NH-8.
Housing prices in Golf Course Road too have surged 42% on year. The revised prices in Golf course road micro market now account for the highest property values in the region, surpassing the housing prices of Delhi micro market, which was the highest so far, said the report.
The unsold inventory in the region dropped by 38% compared to the pre-pandemic levels, highest amongst the top eight cities of the country, indicating healthy market dynamics. The region also witnessed the steepest decline in unsold inventory at 9% YoY during Q1 2023, signaling positive consumer buying sentiment.
Maximum number of unsold units are in Noida region. About 42% of the unsold units falls in the price range of Rs R2,500 – 5,000 per sq ft.
“FY 23 witnessed the highest-ever new launches and sales across major Indian cities in India. The trends will likely continue, the sale and supply will likely grow, and the price rise will be moderate,” said Pankaj Kapoor, Managing Director – Liases Foras.
Housing prices in MMR largely remained stable, during Q1 2023. At the same time peripheral micro markets like Panvel witnessed a 9% increase on YoY basis, followed by western suburbs at 6.4% . Moreover, the region continued to account for the highest share in unsold units amongst the major cities in India. Unsold inventory has been consistently rising in the region for the last few quarters, led by new project launches in the city.
Housing prices in Hyderabad have witnessed a sharp rise of 46% compared to pre- pandemic levels. Prices of 4BHK units saw the highest increase at 23% YoY, followed by 1BHK units.
Unsold inventory levels in Hyderabad went up by 38% YoY, highest among the top eight cities in India. The surge in unsold inventory can be largely attributed to the spurt in new project launches, particularly in the Northwest and Southwest regions of the city (Gachibowli, Kondapur, Nanakramaguda and Kokapet).
Led by strong demand, housing prices rose 14 per cent annually in Bengaluru. In terms of configuration, 3BHK units saw the highest rise in demand with a 16% rise YoY followed by 4BHK units.
While housing prices increased 11% on year in Pune, it remained stable on a quarterly basis. Housing prices in Kothrud and Chinchwad saw the highest increase at 13% on year.
Prices of 2 BHK and 3 BHK units have shown maximum rise of 9% annually. Chinchwad accounted for about 42% of the unsold inventory in the city out of which maximum units fell in the price range of Rs 5,000-7,500 per sq ft.
