Average housing prices have increased by nearly 5 per cent since the beginning of this calendar year across the top-8 cities of India on account of rising input costs and a strong revival in demand, says a report by PropTiger.com.
The Real Insight Report says that the average prices of residential properties in primary markets across eight cities stood at Rs 6,600-6,800 per square feet. The prices have appreciated by nearly 5 per cent from Rs 6,300-6,500 since the end of the December quarter of 2021.
Vikas Wadhawan, group CFO, PropTiger.com, Housing.com & Makaan.com says: "We are witnessing a modest price increase in the primary housing market. This is mainly because of the sharp rise in prices of key raw materials, such as cement and steel. Apart from a rising input cost, a strong revival in demand after the second wave of the COVID pandemic has put upward pressure on prices."
According to the report, while the weighted average prices have risen marginally by 5-6 per cent across the top cities, they have risen at a higher rate in key micro markets of major cities, such as Hyderabad, Bengaluru and Gurugram.
In Q3 2022, the average prices for new supply and existing inventory across the top eight cities appreciated by 3-13 per cent as compared to the corresponding period last year.
Wadhawan added that housing prices are expected to further rise in the coming quarter on the back of robust demand.
"It is still strong despite the hike in the interest rate on home loans by around 2 per cent since May. Prices of key construction materials have eased, but are still high as compared to the previous year," he adds.
According to the report, housing prices in Ahmedabad rose 5 per cent to Rs 3,600-3,800 per square feet from Rs 3,400-3,600 per square feet in December 2021.
In Bengaluru, the residential property prices appreciated by 6 per cent to Rs 5,900-6,100 from Rs 5,500-5,700 per square feet. Housing prices in Chennai increased marginally by 2 per cent from Rs 5,400-5,600 to Rs 5,500-5,700 per square feet.
In Delhi-NCR, prices increased by 5 per cent from Rs 4,400-4,600 per square feet to Rs 4,700-4,900.
In Hyderabad, the housing prices increased by 4 per cent to Rs 6,100-6,300 per square feet from Rs 5,900-6,100 per square feet.
Housing prices in Kolkata went up by 3 per cent to Rs 4,400-4,600 per square feet from Rs 4,300-4,500 per square feet.
Mumbai saw a 3 per cent increase in prices to Rs 9,900-10,100 per square feet from Rs 9,700-9,900 per square feet.
In Pune, prices increased by 7 per cent to Rs 5,500-5,700 per square feet in July- September 2022 from Rs 5,100-5,300 per sq ft at the end of the 2021 calendar year.