Housing Prices Surged 20% From 2021 To 2023
Amidst unwavering homebuyer confidence aided by a favourable interest rate cycle and positive economic outlook, housing demand scaled up and prices across the top eight cities in India surged by about 20% in the last two years (2021-2023) as per CREDAI – Colliers - Liases Foras report. Bengaluru, Delhi NCR, and Kolkata have witnessed the highest rise in average housing prices at about 30% in 2023 compared to 2021 levels. This robust growth is underpinned by a notable uptick in housing demand, particularly in the mid and luxury segments. Amidst significant new launches, developers were able to successfully pass on the rising cost of construction in most cases. Overall, the unsold inventory saw a notable drop in 2021 and largely continued to remain rangebound until 2023 end, despite significant influx of new supply. During 2022 and 2023 housing markets across the major cities saw an increase in new property launches, in mid and luxury segments. In cities like Bengaluru, Hyderabad, Kolkata, MMR, and Pune new supply surged 2-2.5 times in the last two years, reflecting robust activity and improved developer-market sentiment. With healthy visibility of upcoming projects from established developers and unchanged repo rate, the residential market will see sustained growth in the short to medium term. Bengaluru noted a significant 31% increase in housing prices during 2021- 2023. The city’s rising streak has been largely consistent over the last two years backed by noticeable uptick in demand for residential properties near IT-localities like Whitefield, KR Puram, and Sarjapur. The peripheral and outer East and West sub-markets witnessed the highest price hike in the last two years in the range of nearly 50-60%. Additionally, the city saw an average 2X rise in new launches in 2023, compared to 2021, with significant surge in luxury and ultra-luxury property launches in peripheral areas within the North and East sub-markets, as they emerge as prominent IT hubs. Average housing prices in MMR, the most expensive residential market amongst the top eight cities saw a modest yet steady 2% increase during 2023 compared to 2021 levels. Post-Covid-19, housing prices in MMR dipped and were steady henceforth for about three years. After a hiatus, prices increased during 2023 and inched closer to pre-Covid levels indicating recovery in the market. The sub-market of Panvel saw a significant surge with a 20% rise in the last two years, followed by Western Suburb (beyond Dahisar) and Navi Mumbai. The completion of the key infrastructure projects like Mumbai Trans Harbour Link (MTHL) and key metro lines, have led to a surge in prices in submarkets in and around Navi Mumbai and Western suburbs. With several upcoming major projects, housing prices are further expected to increase in the foreseeable future.
Tags : positive economic outlook housing demand Average housing prices residential market