As the interest rates are now expected to have peaked, a pause in the rising repo rate paired with healthy domestic economic outlook is expected to keep the market sentiment upbeat, the joint report said.
Among the key property markets, Delhi-NCR saw the highest increase in residential prices at 16 per cent from a year ago, followed by Kolkata and Bengaluru with 15 per cent and 14 per cent increase, respectively.
“Owing to a conducive buying eco-system, homebuyers’ sentiment has been quite positive for the past few quarters. This is also validated by the sheer volume of sales that we have been witnessing in the recent past, especially in tier 1 cities across India,” said Boman Irani, president, CREDAI.
According to him, despite the rise in housing prices, which is primarily owing to rising raw material costs and this consistent demand, the strong momentum is expected to continue as consumers have shown a clear appetite to buy new, bigger houses with better amenities-especially in the post pandemic era.
“The residential real estate in India bounced back post the pandemic and continues its strong momentum since last year. Aided by increased preference for home ownership, relative affordability, quality supply, the sector has remained resilient, offsetting the challenges posed by higher interest rates amidst global headwinds,” said Peush Jain, Managing Director, Occupier Services at Colliers India.The top eight cities continued to witness a rise in new launches, as developers planned to tap the rising demand, owing to which the overall unsold inventory rose 12 per cent from a year ago.“Financial year 2022-23 witnessed the highest-ever new launches and sales across major Indian cities in India. The trends will likely continue, the sale and supply will likely grow, and the price rise will be moderate,” said Pankaj Kapoor, MD, Liases Foras.
With a spurt in new launches, about 95 per cent of the unsold units in the top cities were under- construction. Hyderabad saw the highest jump in unsold inventory levels, at 38 per cent.
At the same time Delhi NCR, Bengaluru and Chennai saw a dip in unsold inventory, on the back of significant rise in sales. Mumbai Metropolitan Region (MMR) continued to account for the maximum share in unsold inventory at 37 per cent, followed by Pune at 13 per cent.
