The CREDAI-Colliers-Liases Foras Housing price Tracker report-2022 has revealed that the prices of houses in eight main cities across the country are registering a growth by at least 6%. This is attributed to high demand for houses and quality construction by major players in the field. In fact, the prices have started rising from the first quarter of 2022, the report said. The housing prices have registered a hike following spurt in demand since the last year and due to increase in the cost of the building materials. The highest increase in residential units was recorded in Delhi -14, followed by Kolkata (12 %), Ahmadabad (11%).
Since the beginning of this year, the interest rates on housing loans, building material costs have increased. But, the construction of new projects reached full swing following demand in the market. In the process, inventory of unsold units is also increase at the rate of 3% per annum. It is attributed to increased construction of units in new projects. In fact, 94% of the unsold units in the inventory pertained to new projects. Increased sale of units led to Bangaluru reduce unsold units inventory by 14 percent per annum, while Mumbai, Hyderabad and Ahmedabad markets registered an increase in unsold units inventory due to heightened construction activity. The unsold units’ inventory in Mumbai was put at 37%. The inventory in Delhi and Pune was 13% each.
In the third quarter of 2022, Delhi-National Capital region registered the highest growth in increase in the prices of houses. Since September this year, the prices have been increasing. The Annual hike in prices of houses in Delhi is put at 14%. The unsold inventory in the third quarter of the current year has decreased by 11%. The growth of unsold units inventory in Mumbai is put at 21% per annum. In Bengaluru market, the prices of houses remained more or less the same during the past two years, the unsold units inventory here is increasing at the rate of 14% per year.
Credai national president Harshavarthan Patodia has said that the real estate markets across the country have registered good recovery banking on the buyers’ sentiment. In the post-Covid-19 scenario, people are preferring to own houses rather than living in rented houses. As a result, the market is buoyant. The current festival season is going to last till this year end. The sale of houses is going to increase further, leading to reduction in unsold inventory. The prices of houses have increased due to inflation in international market. However, the surge in demand will continue further due to market demand.
During the past two years, the uncertainty in the market eased leading to the recovery of the market. Inflation, hike in cost of construction materials have pushed the prices of houses in the nation. In spite of it, several developers have launched their projects. The impact of inflation is high on the salaried class. These constitute the major chunk of the buyers of property in main cities, remarks Colliers India Chief Executive Officer and market development MD Ramesh Nair. Liases Foras Managing Director Pankaj Kapoor said that the total sales of houses in the three quarters during the current year are 16% more than that of the sales during the corresponding period last year.
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