The real estate sector is not only reviving, but it is also substantial in many parts of India. Strong demand, especially in the housing sector, is showing its effect even after the increase in home loan interest rates. According to a report released by CREDAI, Colliers and Liases Foras, housing prices in the top eight cities have seen an 8 per cent year-on-year increase amid strong housing demand and consistent launches by top developers.
Increase in these cities including Delhi
However, the increase in prices has not been uniform across cities. Some cities have seen phenomenal growth, while many cities have seen below-average growth. According to the report released by CREDAI, Colliers and Liases Foras, during the January-March quarter of 2023, Delhi-NCR saw a 16 per cent rise in housing prices, which is the highest among the top eight cities in India. According to the report, Kolkata ranked second with a 15 per cent year-on-year increase in housing prices. Meanwhile, Bangalore saw a 14 per cent year-on-year increase in housing prices. Piyush Jain, managing director of Occupier Services at Colliers India, said that housing immovable services in India seem to be returning after the pandemic. Its strong momentum has continued since last year.
Delhi prices are increasing since 33 months
According to the report, the housing prices in Delhi-NCR have increased continuously for the last eleven quarters. Housing prices in the Dwarka Expressway area increased by 59 per cent, mainly due to the opening of the Central Peripheral Road and the loop connecting the Dwarka Expressway to National Highway-8. Meanwhile, Golf Course Road in Gurugram saw a year-on-year growth of 42 per cent. The report said that housing prices in Hyderabad increased by 13 per cent year-on-year during the first quarter of 2023, followed by Pune and Ahmedabad by 11 per cent each.?
Property prices remained stable in Mumbai
Housing prices in the Mumbai Metropolitan Region (MMR) remained largely stable during the first quarter of 2023. Peripheral micro market markets such as Panvel saw a 9 per cent year-on-year growth, followed by western suburbs with 6.4 per cent year-on-year growth. Pankaj Kapur, Managing Director, Liaisons Forums, said that FY23 witnessed the highest ever new launches and sales across major Indian cities in India. The trend is likely to continue, sales and supplies are likely to increase and prices will come down marginally.
Decline in unsold inventory
The total unsold inventory in the top eight cities of India grew by 12% year-on-year. Meanwhile, the level of unsold inventory in Hyderabad increased by 38 per cent year-on-year, the highest among the top eight cities. The report said that at the same time, Delhi NCR, Bengaluru and Chennai saw a decline in unsold inventory. As per the report, “MMR continues to account for the maximum share of 37 per cent in unsold inventory, followed by Pune at 13 per cent.
Rising interest did not allow the prices to come down
Vimal Nadar, Senior Director and Chief of Riches at Colliers India, said that despite the RBI's 250-basis point increase in the repo rate from May 2022, the residential sector in India remained resilient through 2022 and Q1 2023. The increase in home loan interest rates did not dampen demand as the sales momentum continued unabated. , With developers focusing on providing relevant supply at the right prices and locations, residential real estate is expected to remain promising in 2023.
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