With a 14% year-over-year increase to Rs 7,741 per square foot for July to September 2022, Delhi-NCR saw the highest growth in residential real estate prices. On the other hand, the most expensive market in the nation, the Mumbai Metropolitan Region (MMR), has maintained its rate of Rs 19,485 per square foot from the previous year.
Amid solid housing demand and high-quality launches by top developers, housing prices in India's top eight cities—Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad—continue to rise at a rate of 6% year over year. Kolkata and Ahmedabad came in second and third, respectively, with increases of 12% and 11%, behind Delhi-NCR.
Due to growing demand since last year and rising input costs, house prices have been rising since the beginning of 2022.
New launches have increased as the industry picks up steam again after a lull despite rising interest rates and input costs since the start of the year. As a result, unsold inventory increased by 3% annually.
Around 94% of India's unsold inventory is under construction due to the surge in launches over the last few quarters. Most cities experienced a decrease in unsold inventory, with Bengaluru recording the most significant reduction of 14% year over year, driven by more effective sales. Only Hyderabad, MMR, and Ahmedabad saw an expansion in unsold inventory, with notable new launches serving as the driving force.
MMR continues to represent the most significant portion of unsold inventory at 37%, followed by 13% in Pune and Delhi-NCR, respectively.
Since the pandemic redefined how significant home ownership is, the national real estate market has experienced a K-shaped rebound in pricing, and consumer confidence has remained high. Given that the holiday season is anticipated to stretch through the end of this year, we might anticipate that sales will be headed north. He asserted that the price increase would probably continue due to the high demand, nonetheless.
As per Colliers' chief executive for India and managing director for market growth in Asia, while residential activity is still high, the salaried class may be affected by recessionary pressures.
The total deals for the first three-quarters of CY22 are 16% higher than the same period in CY21. According to Pankaj Kapoor, managing director of Liases Foras, sales volumes are projected to stay robust because there is still parity between prices and affordability despite rising interest rates and marginal property prices.
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