Housing prices across 8 major Indian cities increased by 7% in Q2 2023: Report

As per the data, Kolkata recorded the highest appreciation in average residential prices at 15 YoY, followed by Delhi NCR and Hyderabad.

Housing prices in Delhi-NCR rose by an average 14 per cent year-on-year during April-June period, but fell 3 per cent in Mumbai Metropolitan Region (MMR), according to a joint report by CREDAI, Colliers India and Liases Foras.

Among eight cities, MMR was the only cities that saw fall in average prices during the April-June quarter by 3 per cent to ₹19,111 per square feet due to significant new supply and rising unsold inventory.(HT File Photo)

Realtors' apex body CREDAI, real estate consultant Colliers India and data analytic firm Liases Foras released a report, stating that housing prices across the eight major cities increased by an average 7 per cent year-on-year (Year-on-Year) during the second quarter of this calendar year on strong demand.

As per the data, Kolkata recorded the highest appreciation in average residential prices at 15 YoY, followed by Delhi NCR and Hyderabad with 14 per cent and 13 per cent increase, respectively.

Among eight cities, MMR was the only cities that saw fall in average prices during the April-June quarter by 3 per cent to ₹19,111 per square feet due to significant new supply and rising unsold inventory.

"The housing market has maintained its prudence and discipline primarily due to a high number of new launches over the last year, and momentum is continuous. Increasing supply has kept the price rise moderate and productive, drawing both the end user and long-term investors," Liases Foras MD Pankaj Kapoor said.

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CREDAI National President Boman Irani said the ongoing momentum in quantum of sales across the country is a clear reflection of positive homebuyer sentiments and validates the conducive nature of the market.

"We are also witnessing record breaking numbers due to the pent-up demand from Covid and despite the price rise, we expect this trend to continue for the rest of the fiscal year –- on the back of a relatively stabilised repo rate and lending eco-system," he said.

Irani said the upcoming festive season will help in further boosting the sales and sustain the momentum through the start of 2024.

"Over the last 10 quarters, there has been a consistent upward trend in housing prices across the country. With repo rate stabilizing since February 2023 at 6.5 per cent, homebuyers' sentiments remain positive due to greater visibility on monthly EMIs," said Peush Jain, Managing Director, Occupier Services, Colliers India.

"While developers continue to grapple with the challenges of higher costs of construction, housing demand remains unwavered," he said.

Commenting on the report, Omaxe MD Mohit Goel said the increase in housing price was long overdue as rates were stagnant for almost a decade.

"Barring few locations, the price appreciation has been modest and prices continue to remain in affordable range," he said.

As per the report, housing prices in Ahmedabad rose 10 per cent Y-o-Y to ₹6,507 per square feet during April-June period.

Bengaluru too witnessed a 10 per cent increase in prices to ₹8,688 per square feet.

The prices of residential properties in Chennai went up 6 per cent to ₹7,653 per square feet.

In Delhi-NCR, rates shot up 14 per cent to ₹8,652 per square feet.

Housing prices in Hyderabad rose 13 per cent to ₹10,530 per square feet.

Prices of residential properties in Kolkata went up 15 per cent to ₹7,315 per square feet.

Pune saw an appreciation of 11 per cent Y-o-Y during April-June to ₹8,540 per square feet.