Overview of Rising Real Estate Prices
A resurgence in demand for residential real estate has fueled price increases in eight major Indian cities, as revealed in a joint report by the real estate association CREDAI, domain experts Colliers, and Liases Foras. Delhi-NCR experienced the most significant price surge at 10% during the second quarter of 2022 (April-June). Other cities included in the analysis are Mumbai, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad.
The sales momentum, initiated in the previous year, persisted into the second quarter of 2022, driven by pent-up demand and appealing prices. In response to persistent high inflation, the Reserve Bank of India's (RBI) Monetary Policy Committee elevated the repo rate by 50 basis points to 5.40%. This action necessitates many banks and housing finance companies to adjust their lending rates accordingly, closely mirroring the RBI's rate hike.
Delhi-NCR's Real Estate Market
Within Delhi-NCR, Gurgaon's Golf Course Road witnessed the most substantial year-over-year price escalation at 21%, followed by the Noida Expressway. Noida currently holds the entirety of the unsold inventory (including Noida Extension and Greater Noida), while the overall unsold inventory across Delhi-NCR has reached a three-year low. With the rise in property values, approximately 48% of the unsold inventory falls within the price bracket of ₹2,500-5,000 per square foot.
Ahmedabad's Housing Sector
The joint report by CREDAI, Colliers, and Liases Foras indicates that Ahmedabad's housing prices appreciated by 9% year-over-year, reaching ₹5,927 per square foot during the April-June period of 2022. This price escalation is juxtaposed with an increase in unsold inventory, primarily attributed to substantial new launches. Gandhinagar recorded the most significant year-over-year increase at 13%, as highlighted in the Housing Price-Tracker Report 2022.
Pune's Real Estate Trends
The report reveals that Pune experienced a 5% rise in housing prices to ₹7,681 per square foot during the second quarter (April-June). The surge in new launches over recent quarters has contributed to a decrease in unsold inventory across many cities. Pune stands out with robust demand for 2 BHK properties, the category demonstrating this maximum 5% year-over-year growth. Within Pune, areas like Kothrud and Baner witnessed particularly strong price appreciation, registering gains in the 9-10% year-over-year range, according to the report.