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% 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 a rise in input prices. Delhi-NCR saw the highest increase in residential prices at 14% YoY, followed by Kolkata and Ahmedabad with 12% and 11% YoY increases 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% YoY. Owing to the spike in launches in the past few quarters, around 94% of the unsold inventory in India is under construction. The majority of the cities saw a dip in unsold inventory, with Bengaluru witnessing the steepest decline of 14% YoY, led by higher sales. Only Hyderabad, MMR, and Ahmedabad saw an increase in unsold inventory, led by significant new launches. MMR continues to account for the highest share in unsold inventory at 37%, followed by 13% in Delhi- NCR and Pune each.
Harsh Vardhan Patodia, President of CREDAI National stated, “The Real Estate market across the country has witnessed a K-shaped recovery in terms of prices, the consumer sentiment has continued to stay robust as the pandemic reshaped the importance of owning a home rather than renting one. With the festive period expected to continue till the end of this year, we can expect sales to be northbound and the number of unsold inventories to decline as well. While there has been a rise in housing prices in line with the global inflationary trends, the market can expect the prices to continue to rise owing to the robust demand. The industry has embarked towards solidity after a let-up due to the pandemic and should be able to stabilize in H1 of 2023”.
“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,” said Ramesh Nair, Chief Executive Officer - India & Managing Director, Market Development, Asia, Colliers.
“The aggregated sales of three-quarters of CY22 are 16% higher than the aggregate similar three quatres sales of CY 21. Despite increasing interest rates and marginal property prices, there is still a parity between the prices and affordability; sales volumes are likely to stay strong. The year 2022 is slated to pose the highest ever sales in the residential market in India, said Pankaj Kapoor, Managing Director, Liases Foras”.
Delhi-NCR continues to witness the highest price appreciation during Q3 2022, at 14% 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% YoY. Golf Course Road saw the highest price rise of 21%, followed by Ghaziabad. The unsold inventory in the city dropped by 11% YoY during Q3 2022. Unsold inventory rose 21% YoY in the 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% YoY in the region, while housing prices continue to remain rangebound with a slight dip of 1% on a quarterly basis. However, Western Suburbs (beyond Dahisar) saw the highest increase in prices at 10% YoY followed by Panvel with 8% increase YoY. Bengaluru witnessed the steepest decline in unsold inventory, at 14% YoY.
While housing prices in Bengaluru increased 6% YoY after remaining rangebound for the last two years, unsold inventory witnessed a sharp decline during Q3 2022, dropping by 14% YoY. Amidst high inclination towards homeownership and higher disposable income, demand for large spaces and self-sustained properties is rising. During Q3 2022, unsold inventory dropped 34% compared with Q3 2019 levels.
