Average Housing prices in NCR Region increased by 16% YoY, highest amongst the top eight cities as per the Housing Price Tracker Report released by CREDAI, and real estate analytics firms Colliers and Liases Foras. While average property prices in Mumbai Metropolitan Region (MMR) dropped by 2% in Q1 2023.
However, Mumbai was the only exception since residential prices went up by 16% in Delhi-NCR, 15% in Kolkata, 14% in Bengaluru, 13% in Hyderabad, and 11% in Ahmedabad and Pune, the data showed. The residential prices of Mumbai rose to 16% followed by MMR’s Panvel recording a rice rise at 9%, followed by the western suburbs at 6.4% YoY.
On unsold inventory front Mumbai had the largest share of unsold inventory at 37%. While the unsold inventory rose to 29% in MMR region and only Noida region of NCR saw maximum number of unsold units of which 42% of the unsold units fell in the price range of INR2,500 – 5,000 per sq ft. Pune unsold inventory was at 13%, and Delhi-NCR recorded 12% unsold inventory as per the report.
MMR region with the average property prices having dropped by 2% settled at INR 19,219 per square feet in the first quarter of 2023. It was INR 19,557 in the corresponding period last year, as pert the Housing Price Tracker Report. Unsold inventory continues to see a rise in MMR; up 29% YoY with majority of the unsold units falling in the price range of INR7,500-10,000 per sq ft out of which about 50% are in Central Suburb extension said the report.
Despite the rise in housing prices, demand remains strong, especially in tier 1 cities. Developers are focusing on delivering relevant supplies at the right price and location.
Pankaj Kapoor, managing director, Liases Foras, said, “The 2022-23 financial year witnessed the highest-ever new launches and sales across major Indian cities. The trends will likely continue, the sales and supply will likely grow, and the price rise will be moderate.”
The report mentioned Pune housing prices firming up by 11% YoY in Q1 2023, with prices in Kothrud and Chinchwad recording the highest per sq ft price increase at 13% YoY. Prices of 2 BHK and 3 BHK units have shown maximum rise of 9% YoY, with increasing demand in these configurations. Chinchwad accounted for about 42% of the unsold inventory in the city out of which maximum units fell in the price range of INR5,000-7,500 per sq ft.
For Ahmedabad, Q1 2023, saw an 11% increase in housing prices, on a YoY basis. With the recent rise in Jantri rates, housing prices are likely to increase further. Unsold inventory in the city increased 37% YoY, led by the rise in new launches mentioned the report.
The report also reported about Kolkata’s unsold inventory going up 13% YoY, which was recorded the highest in the last 6 quarters. The housing prices in the city of joy increased 15% YoY during Q1 2023. North Kolkata saw the highest rise in prices at 25% YoY followed by Southeast Kolkata. Prices in 3BHK units saw the highest rise at 19% YoY followed by 2BHK units owing to their rise in demand quoting the report, while East Kolkata accounted for the highest unsold inventory, of which most of the units (33%) falls in INR 5,000–7,500 per sq ft price range.
Housing prices in the city witness a sharp rise of 46% compared to pre pandemic levels in Hyderabad, while Bengaluru housing prices rose 14% on YoY basis due to strong demand and Chennai recorded an increase by 4% on YoY basis. Prices for 1BHK and 4BHK configurations rose in the range of 6-8% on a YoY basis in Chennai, while the overall housing prices in Bengaluru increased 14% YoY during Q1 2023, Inner North region saw a drop in prices at 13% YoY due to limited demand. For Hyderabad housing prices saw a constant rise since the last 9 quarters. Overall, housing prices surged 13% YoY with highest rise seen in Central Hyderabad at 55% YoY. Prices of 4BHK units saw the highest increase at 23% YoY, followed by 1BHK units quoted the report.
-SURESH RATHOD
