Muristek
New Delhi, May 24
Housing prices increased by up to 11 per cent annually across eight major cities during the January-March period of 2022 due to a rise in demand for residential properties and a sharp hike in rates of construction raw materials, according to a joint report by CREDAI, Colliers and Liases Foras.
Delhi-NCR witnessed highest rise in housing prices by 11 per cent to Rs 7,363 per square feet during January-March 2022 as compared to the year-ago period, according to the first edition of the Housing Price-Tracker report by realtors body CREDAI, real estate consultant Colliers and data analytics firm Liases Foras.
Hyderabad witnessed nine per cent increase in housing prices to Rs 9,232 per square feet, while Ahmedabad saw an eight per cent appreciation to Rs 5,721 per square feet. Kolkata saw an increase of six per cent to Rs 6,245 per square feet.
Housing prices in Bengaluru, Chennai and Mumbai Metropolitan Region rose by 1 per cent each at Rs 7,595, Rs 7,107 and Rs 19,557 per square feet, respectively.
"A pick-up in housing demand across most cities and skyrocketing prices of raw materials for almost two years, led to year-on-year (YoY) increase in housing prices, surpassing pre-covid levels across all eight metro cities," a joint statement said.
The average residential prices in India rose by 4 per cent YoY during January-March 2022 after a prolonged slowdown, indicating that the residential market is on its path to recovery.
Colliers India CEO Ramesh Nair expects a further increase of 5-10 per cent in housing prices over the next 6-9 months.
"It is exciting to see India's residential market performing well and beating market expectations after so many years. End-users have faith in the market, and we expect credible developers to see higher sales this year as end-users are discerning about the reputation of the developer," he said.
Liases Foras Managing Director Pankaj Kapoor said, "January-March quarter 2022 witnessed the new launches back to the pre-covid level. The sales will continue to grow despite the recent increase in the interest rates."
CREDAI President Harsh Vardhan Patodia said, "Price hike has been an ongoing issue, but we are pleased with the finance minister and the government's intervention to control the rise in the cost of raw materials and in turn, control inflation as the Indian economy had stayed resilient while grappling the strains of cost inflation of raw material prices in the last 18 months."
Patodia suggested the state governments to reduce duties on fuel.
CREDAI sincerely hopes that manufacturers will pass on the price cuts to end- users.
"This will help the real estate developers negate increased construction costs over the last two years, which will only help prospective homebuyers," Patodia said.