India witnesses 8% surge in home prices, Delhi-NCR leads with 16% rise

According to a price tracker report jointly prepared by Credai, Colliers, and Liases Foras, housing prices in India's top eight cities, namely Delhi NCR, Pune, Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, and the Mumbai Metropolitan region, witnessed an 8% Y-o-Y increase in the first quarter of 2023. The rise in prices can be attributed to strong housing demand and launches by top developers. The residential prices in Delhi-NCR experienced the highest surge, with a 16 percent year-on-year increase, followed by Kolkata and Bengaluru with 15% and 14% increases, respectively. Liases Foras and Colliers provided the Pan India residential prices for the first quarter of 2023 in Rupees per square foot. It is worth noting that all prices are based on the carpet area. Despite the increasing interest rates, housing prices have continued to rise due to consistent demand observed since the previous year. The report highlights that as the interest rates are expected to have reached their peak and a pause in the rising repo rate, along with a healthy domestic economic outlook, the market sentiment is expected to remain positive. The top eight cities have witnessed a rise in new launches as developers aim to capitalise on the growing demand. Consequently, the overall unsold inventory increased by 12 percent Y-o-Y. With the surge in new launches, approximately 95 percent of the unsold units in the top cities are still under construction. Hyderabad experienced the highest growth in unsold inventory levels, with a 38% year-on-year increase. On the other hand, Delhi NCR, Bengaluru, and Chennai saw a decline in unsold inventory, attributed to a significant rise in sales. The Mumbai Metropolitan region (MMR) accounted for the largest share of unsold inventory at 37%, followed by Pune at 13%. Also read: Shriram Properties Targets 25% Sales Growth in FY24 Govt seeks data on stalled housing projects, aims to resolve issues