Housing Prices Across India Likely To Rise 8 Per Cent This Fiscal Year, Says Report

According to Ind-Ra report, sales in housing across the country to jump by around 12 per cent year-on-year in FY23

New Delhi: Housing prices across the country may appreciate by 8 per cent this financial year, India Ratings and Research (Ind-Ra) said on Monday.

According to the PTI, Ind-Ra has clarified the price rise in the housing sector which it attributed mainly because of rise in demand from end users.

In a statement the rating agency said, “The current housing sales uptick and increased demand is end user driven and not speculative. Therefore, the hike in prices will be sustainable and is likely to be incremental. Prices were up 6 per cent pan-Indian in FY22.”

As of now, there has been a boom in housing sales in the country but that has not been accompanied by a sharp rise in prices so far, the rating agency added.

“After a prolonged period of decline, prices stabilised in the past few years. Ind-Ra expects the price appreciation of residential property in FY23 to be around 8 per cent at pan-Indian level, led by cities such as Bengaluru, Mumbai, Pune, and Hyderabad,” the statement noted.

According to the report, Ind-Ra sees sales in housing to jump by around 12 per cent year-on-year (YoY) in FY23.

“In FY22, for the top eight real estate clusters, housing sales increased 42 per cent YoY on a pandemic-impacted lower base. In FY23, Ind-Ra expects well-known and trusted developers to witness better sales, and affordable housing segments to continue to claim around 50 per cent share of the total sales," the statement added.