Housing costs surged about 20 per cent throughout the highest-8 cities up to now two years between 2021 and 2023 amid unwavering homebuyer confidence aided by a beneficial rate of interest cycle and constructive financial outlook, based on a joint report by CREDAI, Colliers and Liases Foras.
“Bengaluru, Delhi-NCR and Kolkata have witnessed the highest rise in average housing prices at about 30 per cent in 2023 compared to 2021 levels. This robust growth is underpinned by a notable uptick in housing demand, particularly in the mid and luxury segments. Amidst significant new launches, developers were able to successfully pass on the rising cost of construction in most cases,” based on the report.
Overall, the unsold stock noticed a notable drop in 2021 and largely continued to stay rangebound till 2023 finish, regardless of important inflow of recent provide. During 2022 and 2023 housing markets throughout the most important cities noticed a rise in new property launches, in mid and luxurious segments, the report mentioned.
In cities like Bengaluru, Hyderabad, Kolkata, MMR, and Pune new provide surged 2-2.5 instances within the final two years, reflecting strong exercise and improved developer-market sentiment. With wholesome visibility of upcoming tasks from established builders and unchanged repo price, the residential market will see sustained progress within the quick to medium time period, it mentioned.
Boman Irani, president of CREDAI National, mentioned, “The year-on-year increase in housing prices is a combination of a number of factors – characterised by strong, robust demand from homebuyers – especially for mid and premium segments, along with the existence of a conducive buying eco-system coupled with healthy macro-economic factors, and the rise in prices of construction materials.”
Irani added that the continuing momentum additionally inspired quite a few builders that has led to the rise in housing provide throughout main cities in India. “We expect both, housing demand and supply, to thrust forward in 2024 not only in top 8 cities but in Tier-II and III regions as well.”
Badal Yagnik, chief government officer of Colliers India, mentioned, “Housing prices continued to reflect strong market momentum and saw a 9 per cent annual rise in 2023. The year outperformed in several areas including uptick in high-end & luxury segments, scaling new peak in sales volume, infrastructure led development, resulting in deeper price discovery across most of the markets.”
Yagnik added that throughout the 12 months, all of the eight main cities witnessed a rise in housing costs, with Bengaluru, highest at 21 per cent YoY, adopted by Kolkata at 11 per cent. Looking forward to 2024, the market is nicely poised to keep up its present trajectory, with the mid and luxurious segments anticipated to thrive additional, providing profitable alternatives for traders and homebuyers alike.
Bengaluru Sees Heightened Residential Activity During 2021-23
Bengaluru famous a big 31 per cent enhance in housing costs throughout 2021- 23. The metropolis’s rising streak has been largely constant over the past two years backed by a noticeable uptick in demand for residential properties close to IT localities like Whitefield, KR Puram, and Sarjapur.
Housing Prices in MMR Continue to Rise
Average housing costs in MMR, the most costly residential market amongst the highest eight cities noticed a modest but regular 2 per cent enhance throughout 2023 in comparison with 2021 ranges. Post-Covid-19, housing costs in MMR dipped and had been regular henceforth for about three years. After a hiatus, costs elevated throughout 2023 and inched nearer to pre-Covid ranges indicating restoration available in the market.
Vimal Nadar, senior director and head of analysis, Colliers India, mentioned, “Over the last two years from 2021 to 2023, cities like Delhi-NCR, Chennai and Pune, registered a notable decrease in unsold inventory. While Delhi NCR led the pack with a significant 19 per cent drop, Chennai and Pune followed closely with about 5-10 per cent drop each, during the two-year period.”
Nadar added that with an anticipated regular rise in revenue ranges coupled with constructive market sentiment, the demand momentum is prone to stay sturdy in these markets.
Pankaj Kapoor, managing director of Liases Foras, mentioned, “The current state of real estate is the most productive when sales, supply, and prices are growing, and the price rise is not speculative. These factors work in harmony in a balanced and healthy real estate market.”
