Indian Real Estate: Average Housing Price Increased By 5% Across Eight Cities This Year

The realty market of eight cities across India, including Chennai, Mumbai, and Hyderabad have seen a housing price increase by 5 percent this year. This increase in the prices was seen in the first nine months of 2022 owing to a rise in input costs and a strong revival in demand, mentioned a report published by property brokerage firm PropTiger.com on Monday.

They also mentioned that as per the Real Insight Report, the average prices of residential properties in primary markets stand at Rs 6,600-6,800 per square feet across eight cities. This is an increase by nearly five percent since the end of the December quarter, when the prices were at Rs 6,300-6,500.

The report stated that in Ahmedabad housing prices saw an increase of 5 percent from Rs 3,400 to 3,600 per square feet to Rs 3,600 to 3,800 per square feet. In Bengaluru, there is an increase of 6 per cent from Rs 5,500 to 5,700 per square feet to Rs 5,900 to 6,100. Meanwhile, in Chennai, there has only been a marginal increase of 2 percent to Rs 5,500 to 5,700 from Rs 5,400 to 5,600 per square feet. In Delhi-NCR there is a 5 percent increase in prices from Rs 4,400-4,600 per square feet to Rs 4,700 to 4,900 per square feet. The housing prices in Hyderabad increased 4 percent from Rs 5,900-6,100 per square feet to Rs 6,100-6,300 per square feet.

Housing prices in Kolkata and Mumbai went up by 3 percent. In Kolkata, there is a rise to Rs 4,400-4,600 per square feet from Rs 4,300-4,500 per square feet. While in Mumbai there was an increase in prices to Rs 9,900-10,100 per square feet from Rs 9,700-9,900 per square feet. In Pune, there is an increase of 7 percent from Rs 5,100-5,300 per square feet to Rs 5,500-5,700 per square feet.

Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com and Makaan.com said, “Housing prices are expected to further rise in the coming quarter on the back of robust demand, which is still strong despite the hike in the interest rates on home loans by around 2 percent since May. Prices of key construction materials have eased but are still high as compared to the previous year.”

Meanwhile, the average prices for new supply and existing inventory across the top eight cities increased by 3 to 13 percent in the third quarter of 2022 as compared to the third quarter of 2021.

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