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Real estate boom increases prices by 5–9% in major cities

By wasmulhaq 
Updated Date

New Delhi: The average value of new and available properties in major cities increased by 5–9% in the second quarter due to an improvement in the overall economic climate and increased income stability following the COVID-19 pandemic.

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This is also because of the rise in input costs, inflationary pressures, and premiums attached to ready-to-move-in inventory. This, however, had little impact on home buyer sentiment.

As per the Real Insight Residential – April-June 2022 report, there was no negative effect on either sales or launches during the quarter.

The study cropped up for cities like Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune.

The repo rate remained fairly affordable during the quarter, despite the RBI’s raising the repo rate twice to bring it to 4.9 percent. According to Vikas Wadhawan, Group CFO at Housing.com, PropTiger.com, and Makaan.com, “the largest booster to housing demand has been the rising importance of having a property, which has further been backed by consumer confidence in the general economic condition and coming income stability.”

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The quarterly analysis of India’s top eight residential markets by REA-backed PropTiger.com said the maximum price rise has taken place in Pune at 5–9 per cent, followed by Chennai (9 per cent), Ahmedabad (8 per cent), Bengaluru (7 per cent) and Delhi (6 per cent) respectively.

However, sales in the Delhi-NCR market have fallen by 10% due to a lack of available houses and flats in the right locations.

Real estate developers have been planning to return to the market fully prepared in the second quarter of the year. They are looking for encouraging trends in the upcoming festive season, which is likely to prove a boon for the real estate sector.

 

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