Hyderabad: Resurgence in residential demand has led to a five per cent increase in prices across the top eight cities of Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Pune, Hyderabad, Chennai, Bengaluru and Ahmedabad while registering a marginal decline in unsold inventory during the second quarter (Q2) of 2022.
According to the CREDAI–Colliers–Liases Foras Housing Price Tracker Report 2022, residential prices, which have surpassed pre-pandemic levels, have been seeing an upward trend led by rising demand amidst rising prices of construction material.
Delhi-NCR saw the highest increase in residential prices at 10 per cent year on year, followed by Ahmedabad and Hyderabad with nine per cent and eight per cent YoY increase respectively.
The sales momentum that started in the latter part of last year continued in Q2 2022 as well, led by pent-up demand and attractive pricing, the report said, adding that despite rising prices and an increase in new launches in the last few quarters, unsold inventory saw a dip in majority of the cities.
Bengaluru witnessed the steepest decline of 21 per cent YoY in its inventory overhang, led by higher sales. Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, which was led by significant new launches. MMR still accounts for the highest share in unsold inventory at 36 per cent, followed by 14 per cent in Delhi- NCR and 13 per cent in Pune.
CREDAI National president Harsh Vardhan Patodia said the central bank continued to increase repo rates to offset the impact of inflation and banks are expected to increase loan interest rates, including that of home loans.
“Housing prices have increased between two per cent – five per cent across cities, as materials and labour costs continue to remain high. We may see a marginal dip in demand due to increasing interest rates, but the sales will continue to grow across segments from September, as we enter the festive season,” he said.
Colliers Asia CEO Ramesh Nair and Liases Foras managing director Pankaj Kapoor also echoed the view that the forthcoming festive season would keep the market sentiment high, resulting in higher sales.
Rising home ownership amongst millennials supported by higher disposable income and willingness to upgrade to larger spaces equipped with better amenities have sparked a sharp growth in housing demand in the last few quarters, the report said.