Positive homebuyer sentiment and steady demand have kept the momentum strong in the residential market across major Indian cities. Average housing prices across the top eight Indian cities have witnessed a 3% sequential growth in June quarter, showed a CREDAI-Colliers-Liases Foras joint study.Interestingly, quarterly price movements at India level have been almost similar at about 3% for the last four quarters.On an annual basis too, average housing prices at the end of June have shown a 12% growth across the eight major cities. Interestingly, 7 out of 8 cities under review witnessed annual price appreciation, with Delhi-NCR witnessing the highest price rise at 30% closely followed by Bengaluru, the data showed.While unsold inventory remained stable on an annual basis at a pan India level, it declined marginally on a quarterly basis amid healthy sales in housing units. At 5%, Kolkata saw the highest sequential decline in unsold inventory levels followed by Pune with 3% dip.As at June end, over 10 lakh housing units were available across the primary market of eight major cities, with MMR alone having about 40% share in unsold inventory levels. Despite yearly increase in the number of unsold units in Hyderabad and Bengaluru, both cities saw a modest dip on a sequential basis.As the festive season approaches, developers are likely to closely monitor new launches and overall housing stock in prominent residential catchment areas.“Indian real estate has been somewhat experiencing a bull run in the past few quarters, substantiated by the volume of transactions across Top 8 cities as well as the prevalent positive sentiments towards housing. There has been a direct impact on housing prices – signifying not just the underlying demand but the definitive shift towards real estate as a preferred asset class,” said Boman Irani, president, CREDAI National.With the upcoming festive season – coupled with the Government’s focus on infrastructure and a relatively stable lending eco-system – he expects this momentum to have further impact on both prices and unsold inventory levels, as the industry’s demand-supply dynamics change.”Housing demand has continued to remain healthy over the past few quarters. Concurrently, stable interest rates and recent positive budgetary announcements, have provided tailwinds for the housing market of the country. Notably, average housing prices have witnessed a consistent double-digit annual growth rate (12% in Q2 2024,) adding buoyancy to the sustained growth story in residential real estate,” said Badal Yagnik, CEO, Colliers, India.He envisages a strong finish for the housing market in 2024 led by the upcoming festive season that is expected to further invigorate the housing market with heightened sales and new launches.“Sales across India’s cities have maintained growth despite the price rise. The current quarter also showed a remarkable 33% increase in new launches in the affordable segment. NCR’s growth in sales and new launches augurs that the market will stay on a growth trajectory,” said Pankaj Kapoor, Managing Director, Liases Foras.Leading the top eight cities, Delhi NCR witnessed a 16% sequential rise in housing prices. Bengaluru too witnessed significant price appreciation, with average housing prices in the city breaching the Rs 11,000 mark during the quarter. Average residential prices in the city increased by 8% on a quarterly basis.Excluding Mumbai Metropolitan Region (MMR), unsold inventory levels have declined by up to 5% on a quarterly basis across all cities under review, the data showed.While MMR witnessed healthy sales in residential units during the period, significant surge in new launches led to a marginal rise in unsold units. On an annual basis with a 13% drop, Pune particularly witnessed the highest annual decline in unsold units. Annual decline in unsold inventory levels have been significant in Ahmedabad, Chennai, and Kolkata too with 6-8% drop.
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