Delhi-NCR Housing Prices Surge By 14% In Q2 On Robust Housing Demand: Report

As per the report, Kolkata saw the highest yearly increase in residential prices, rising by 15 per cent year-on-year. Delhi NCR and Hyderabad followed closely.

Housing prices across the top eight cities in India increased 7 per cent year-on-year (YoY) "amid robust housing demand backed by continued positive homebuyer sentiment and stable interest rates," said a report by CREDAI and Colliers Liases Foras. The report added that over the last 10 quarters, there has been a consistent upward trend in housing prices across the country led by robust demand. 

And this trend is poised for steady growth even amid unprecedented global economic headwinds, the report said, attributing to home ownership desire and stable interest rates, coupled with growth in disposable incomes. 

As per the report, Kolkata saw the highest yearly increase in residential prices, rising by 15 per cent year-on-year. Delhi NCR and Hyderabad followed closely.

"Housing prices in the city have been on the rise over the past seven quarters. The recent surge in housing prices is owing to the rising demand boosted by positive government incentives such as extension of 2 per cent reduction in stamp duty and extension of 10 per cent reduced circle rates till September 2023," the report said. 

In the second quarter, Delhi-NCR ranked second, witnessing the highest 14 per cent YoY surge in housing prices within the northern region. At the micro-market level, Golf Course Road and Dwarka Expressway witnessed the highest rise in housing prices at 46 per cent and 40 per cent respectively, both on a YoY basis. 

Vimal Nadar, Senior Director and Head of Research at Colliers India said, "While most cities saw double-digit price increases during Q2 2023, Delhi NCR is consistently seeing an uptick in housing prices for the past 12 quarters. Notably, the newly developed Dwarka Expressway and the upcoming 50-km, 6-lane highway in Delhi-NCR are expected to further drive demand in Gurugram, Ghaziabad and Noida. Amidst other major cities, prominent micro-markets in MMR saw a price rise of 3-5 per cent year-on-year.”

Similarly, Hyderabad saw a 13 per cent increase in housing prices during the second quarter of the previous year, according to the report.

During Q2 2023, Bengaluru's housing prices surged by 10 per cent YoY. Notably, the periphery and outer west micro markets showed the most significant rise at 42 per cent, propelled by upcoming high-end projects, the report noted. Among different unit types, 3 BHK units experienced the highest surge at 12 per cent YoY, closely followed by 2 BHK units. 

In Q2, Ahmedabad's northwest suburb and Hyderabad's southwest micro-market recorded YoY growth of 26 per cent and 24 per cent, respectively.

Peush Jain, Managing Director-Occupier Services, Colliers India noted, "With repo rate stabilising since February 2023 at 6.5 per cent, homebuyers' sentiments remain positive due to greater visibility on monthly EMIs. While developers continue to grapple with the challenges of higher costs of construction, housing demand remains unwavering. Housing demand is likely to further accelerate in the next few quarters led by the upcoming festive season and continued preference for home ownership."