Residential real estate: Key Indian property markets see 5-7% rise in housing prices in March quarter
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Loading... - Kiaan mahajan
- 03 Apr 2023
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Residential real estate has continued to witness firm growth in demand and conversion across India’s key property markets during the quarter ended March with a steady rise in prices.
This also marks the fifth consecutive quarter of year-on-year growth in prices across all markets. Even in sequential terms, prices have either remained steady or grown across markets during the quarter.
Prices have grown significantly across most markets led by Bengaluru, Mumbai, Chennai, and Hyderabad with 5-7% appreciation, showed data from Knight Frank India.
The residential market has stepped into 2023 on a stable footing with the first quarter of the year registering sales of 79,126 units, up 1% from a year ago when home loan rates were at record low of 6.6% as against 9% now.
Sales grew the most in the Hyderabad market at 19% from a year ago while slipping slightly in the larger markets of Mumbai and Bengaluru at 6% and 2%.
“Given the cautious but optimistic sentiment in the market, we do not believe that home loan rates approaching 2019 levels (9.2%) will be enough to subdue market momentum significantly. The performance of the broader economy and homebuyer sentiment will have a greater bearing on market momentum in 2023 as it dictates homebuyer income levels and demands much more directly,” said Shishir Baijal, CMD, Knight Frank India.Consistent with the upward trend seen in the past three quarters, the share of sales in the Rs 1 crore and above ticket-size grew to 29% from 25% a year ago given the homebuyers’ need to upgrade to larger living spaces with better amenities.
The share of home sales in the Rs 50 lakh to Rs 1 crore category also grew 38% from 35% a year ago.The share of the Rs 50 lakh and below ticket size, however, deteriorated from 41% a year ago to 32% during the quarter, as rising prices, higher interest rates and a comparatively more adverse impact of the pandemic on homebuyers in this segment continued to weigh on demand. Read More…
