Kolkata recorded the highest increase in residential prices at 15% y-o-y, followed by Delhi NCR and Hyderabad with 14% and 13% y-o-y increase, respectively, according to a joint report by CREDAI, Colliers, and Liases Foras.
“The ongoing momentum in quantum of sales across the country is a clear reflection of positive homebuyer sentiments and validates the conducive nature of the market. We’re also witnessing record breaking numbers due to the pent-up demand from covid and despite the price rise, we expect this trend to continue for the rest of the fiscal year – on the back of a relatively stabilized repo rate and lending eco-system. Additionally, the upcoming festive season will help in further boosting the sales and sustain the momentum through the start of 2024,” said Boman Irani, President of CREDAI National.
The top markets have also seen heightened activity in new launches in the past few quarters. This has led to an increase in unsold inventory by 13% y-o-y across India, with Delhi being the only market witnessing a drop.
“Over the last 10 quarters, there has been a consistent upward trend in housing prices across the country. With repo rate stabilizing since February 2023 at 6.5%, 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 unwavered. Housing demand is likely to further accelerate in the next few quarters led by the upcoming festive season and continued preference for home ownership,” said Peush Jain, Managing Director, Occupier Services, Colliers India.The increased demand for spacious dwellings, and increase in high end projects has also pushed housing prices for under construction units northwards in markets like Kolkata, Hyderabad, Delhi NCR and Bengaluru. The prices of 3 bhk and 4 bhk homes have gone up by as much as 2%-20 % across major cities in Q2. “The housing market has maintained its prudence and discipline primarily due to a high number of new launches over the last year, and momentum is continuous. Increasing supply has kept the price rise moderate and productive, drawing both the end user and long-term investors. Sales will likely continue to grow since the affordability and prices maintain parity”, said Pankaj Kapoor, Managing Director, Liases Foras.The Indian housing market is expected to continue its bull run furled by stable interest rates and growth in disposable incomes. The total sales in Q2 stood at 81883 units, higher by 6% yoy. New launches contributed about 15% of the total sales in Q2 2023 led by factors such as relevant products in the right segment at the right price and in a good location.