The prices of housing units are on the rise in the country. During the past two years, the prices of houses in eight cities across the nation have registered an increase of 20%, according to a report by CREDAI-Liases Foras.
The prices of housing units registered at least 30% in the cities of Bangalore, Kolkata, and Delhi in 2023, compared to their prices in 2021.
This is attributed to the growing demand for housing units in the middle and luxury segments. On an annual basis, the prices of houses in Bengaluru increased by 21%, followed by Delhi (9%) and Mumbai (4%). At the same time, there has been a considerable reduction in the inventory of unsold units since 2021. In 2022 and 2023, there was an increase in middle-range and luxury property launches, and at the same time, there was a reduction in the number of units remaining unsold.
The supply of inventory of new homes in the markets of Bangalore, Hyderabad, Kolkata, Mumbai, and Pune increased by two and a half times. This stands as an example of a strong action plan coupled with better developer market sentiment.
“There are many reasons to seek for housing prices to register an increase annually. Besides the growing demand for housing units, the increasing cost of building materials is also responsible for this phenomenon. Not only in eight main cities across the nation but also in Tier-2 and Tier-3 towns, we will witness an increased demand and supply for housing units during 2024,” predicts CREDAI national president Bowman Irani.
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