Delhi-NCR emerges as most promising realty hotspot | Delhi NCR real estate market updates

Delhi-NCR emerges as most promising realty hotspot - Delhi-NCR (National Capital Region's) property market witnessed the highest annual price increase of 14 per cent during July-September at an average ₹ 7,741 per square feet, according to a joint report by CREDAI, Colliers India and Liases Foras.

Housing prices appreciated by 6 per cent across eight cities during July-September 2022, compared with the same quarter last year on rising rates of key construction materials. CREDAI is the apex body for real estate developers in India, while Colliers India is a real estate consultant and Liases Foras is a data research firm.

Delhi NCR saw the highest increase in housing price across pan India at 14 per cent Year-on-Year (YoY). Golf Course Road saw the highest price rise of 21 per cent, followed by Ghaziabad," the joint report said.

As per the data, the average housing prices in Kolkata rose 12 per cent YoY to ₹ 6,594 per square feet in the July-September period of this calendar year. Ahmedabad saw 11 per cent increase in average prices to ₹ 6,077 per square feet, while Pune witnessed a 9 per cent rise in rates to ₹ 8,013 per square feet. The average housing prices in Hyderabad were up 8 per cent to ₹ 9,266 per square feet. The rates appreciated 6 per cent in Bengaluru to ₹ 8,035 per square feet.

The housing prices remained stable in Chennai and Mumbai Metropolitan Region (MMR) at ₹ 7,222 per square feet and ₹ 19,485 per square feet. "Since the beginning of 2022, housing prices have been on the rise on the back of increased demand seen since last year, paired with rise in input prices," the report said.

Why Delhi-NCR emerged as most promising realty hotspot

Amit Jain, Director, Mahagun Group said, "Delhi-NCR has been the most promising realty hotspot in terms of return on investment. Compared to any other part of the country, NCR has showcased the highest increase in housing prices, including Ghaziabad, declaring it the perfect investment destination."

"Despite the consecutive hike in prices of projects, properties have been in constant demand as the urge to own a private space increases as the buying capacity strengthens. The price hike is a consolidated result of multiple factors, including global inflation, war at trade routes, the rising price of raw materials, the availability of prominent projects, etc. However, investors continue to choose real estate as the firmest investment opportunity," he noted.

CREDAI National President Harsh Vardhan Patodia said: "The real estate market across the country has witnessed a K-shaped recovery in terms of prices. The consumer sentiment has continued to stay robust as the pandemic reshaped the importance of owning a home rather than renting one." He expected sales to be northbound and the number of unsold inventories to decline as well. "While there has been a rise in housing prices in line with the global inflationary trends, the market can expect the prices to continue to rise owing to robust demand," Patodia said.

Inflation, hike in input costs put upward pressure on housing prices pan India

On the housing demand, Ansh Batra, Director, Buniyad Group noted, "The annual increase in housing prices can be attributed to factors like global recessionary pressures post-Ukraine-Russia war, a steep rise in the costs of construction materials, repo rate hikes, and unabated tight inflation that India is facing, which has afflicted every economic sector.

"But it did not have a corollary impact on the housing demand, which continues to be buoyant, with the sales in many segments, especially luxury homes exceeding the pre-pandemic levels. However, the report’s grist raises concerns for salaried income classes. For them, the rapid increase in property prices will dilute the affordability factor of homes," he opined. 

Despite increasing interest rates and marginal property prices, there is still a parity between the prices and affordability; sales volumes are likely to stay strong. The year 2022 is slated to pose the highest ever sales in the residential market in India.

(PTI Inputs)

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