Residential property prices in eight major cities across India during the April-June quarter witnessed a 5 per cent average annual increase led by revival in housing demand and rise in construction cost, according to a recent report. Realtors' apex body Credai, real estate consultant Colliers India and data analytic firm Liases Foras have come out with 'Housing Price-Tracker Report 2022' for eight major cities including Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Ahmedabad.
"During Q2 (April-June) 2022, housing prices in India have surpassed pre-pandemic levels, indicating robust demand and supply that is well-aligned with the demand," the report noted, as per news agency PTI.
ALSO READ: Apple Lays Off 100 Contract-Based Recruiters To Rein In Hiring And Spending: Report (abplive.com)
Check price rise in major Indian cities
Delhi-NCR: Delhi and the NCR saw the maximum rise in housing prices at 10 per cent. Housing prices in the Delhi-NCR property market saw the highest annual increase of 10 per cent to Rs 7,434 per square foot. In Delhi-NCR, the report said that Golf course road in Gurugram saw the highest year-on-year price rise of 21 per cent followed by Noida Expressway.
Ahmedabad: It witnessed a rise of 9 per cent year-on-year (y-o-y) to Rs 5,927 per square foot during the April-June quarter of this calendar year, according to the data. Bengaluru saw a 4 per cent price appreciation to Rs 7,848 per square foot, while housing prices in Chennai rose one per cent to Rs 7,129 per square foot.
"Housing prices in Ahmedabad highest in 3 years," the report said, adding that Gandhinagar Suburb saw the highest y-o-y increase at 13 per cent.
Hyderabad: Property rates in Hyderabad stood at Rs 9,218 per square feet in April-June, up 8 per cent from the year-ago period. Prices of residential properties in Kolkata too increased 8 per cent to Rs6,362 per square foot.
MMR: Among the cities, the costliest real estate market of MMR witnessed a 1 per cent rise in housing prices at Rs 19,677 per square foot. In the MMR market, Western suburbs (beyond Dahisar) saw the highest increase in prices at 12 per cent year-on-year.
Pune: Prices in Pune climbed 5 per cent rise to Rs 7,681 per square foot during the June quarter.
Chennai: Prices in Central Chennai witnessed the steepest decline of about 13 per cent y-o-y whereas West Poonamallee saw the highest rise of 13 per cent.
Kolkata: Southwest Kolkata and Howrah saw the highest surge in prices with a 13 per cent rise.
Kothrud and Baner in the Pune market logged the maximum surge in housing prices at around 9-10 per cent range, the report said.
Also, note that the mentioned prices are based on carpet area.
Will prices rise witness an updward trend going ahead?
Pankaj Kapoor, Managing Director, Liases Foras stated in the report that prices would remain "range bound". "With discounted EMI schemes, we see early signs of developers absorbing the impact of increasing interest rates. Sales volumes are likely to improve as we see growing new supply with festive offers," informed Kapoor.
While, Credai national president Harsh Vardhan Patodia said the prices rose as a result of hike in rates of key building materials as well as labour wages, besides some strong fundamentals.
He said there could be a marginal impact on demand due to a hike in interest rates on home loans but sales would continue to grow from September onwards.
The upcoming festive season may keep the market sentiment high, resulting in higher sales despite the hike in interest rates, stated Colliers India Chief Executive Officer Ramesh Nair.
"Housing prices did not rise much in the last one decade. Builders have been operating at a very thin margin. With the rise in prices of key building materials, real estate developers have no option but to pass on the burden to customers. However, large and credible players are witnessing better demand than others, so they are commanding a premium in the market," Pankaj Pal, group executive director, AIPL, said.