Mumbai, 22 November 2022: Average housing prices have increased by nearly 5 per cent since the beginning of this calendar year on account of rise in input cost and a strong revival in demand, according to PropTiger.com.
As per our Real Insight Report, the average prices of residential properties in primary markets across eight cities stood at Rs 6,600-6,800 per square foot. The prices have appreciated by nearly 5 percent from Rs 6,300-6,500 since the end of the December quarter.
While the weighted average prices have risen marginally (5-6%) across the top cities, they have risen at a higher rate in key micro markets of major cities such as Hyderabad, Bengaluru, and Gurugram.
In calendar Q3 2022, average prices for new supply and existing inventory across the top eight cities appreciated by 3-13% as compared to the same period in the previous year.
Mr. Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com & Makaan.com said, “We are witnessing a modest price increase in the primary housing market. This is mainly because of the sharp rise in prices of key raw materials like cement and steel. Apart from rising input cost, a strong revival in demand after the second wave of the COVID pandemic has put an upward pressure on prices.”
Mr. Wadhawan further added, “Housing prices are expected to further rise in the coming quarter on the back of robust demand, which is still strong despite the hike in the interest rates on home loans by around 2 per cent since May. Prices of key construction materials have eased but are still high as compared to the previous year.”
Ms. AnkitaSood, Head of Research at PropTiger.com, Housing.com & Makaan.com said, “Apart from inflationary pleasure, the prices have also risen on account of the premium being charged for the ready-to-move-in residential units. Our insights suggest that nearly 58% of the potential homebuyers are looking for ready-to-move-in properties. Interestingly, with only 21% of the current unsold inventory (7.8 lakhs) in the ready-to-move-in segment, developers are now charging a premium for this segment and for properties nearing completion.”
Ms. Sood further added, “In the current scenario, it is quite expected that property prices will grow in within a close range until the end of 2022 before easing slightly in the coming year.”
As per the report, housing prices in Ahmedabad rose 5 percent to Rs 3,600-3,800 per square feet from Rs 3,400-3,600 per square feet.
In Bengaluru, the residential properties appreciated by 6 percent to Rs 5,900-6,100 from Rs 5,500-5,700 per square feet.
Housing prices in Chennai increased marginally by 2 per cent to Rs 5,500-5,700 from Rs 5,400-5,600 per square feet.
Delhi-NCR saw a 5 per cent rise in prices to Rs 4,700-4,900 from Rs 4,400-4,600 per square feet.
In Hyderabad, the housing prices increased 4 per cent to Rs 6,100-6,300 per square feet from Rs 5,900-6,100 per square feet.
Housing prices in Kolkata went up by 3 per cent to Rs 4,400-4,600 per square feet from Rs 4,300-4,500 per square feet.
Mumbai saw a 3 per cent increase in prices to Rs 9,900-10,100 per square feet from Rs 9,700-9,900 per square feet.
In Pune, prices rose 7 per cent to Rs 5,500-5,700 per square feet in July- September 2022 from Rs 5,100-5,300 per sqft at the end of the 2021 calendar year.