Limited housing supply and inflationary pressures are contributing to rising prices. Photo: Shutterstock
House prices in Delhi-NCR and Bengaluru appreciated 29 per cent year-on-year in the July-September quarter due to strong demand, high input costs and a rise in supply of luxury homes, according to Anarock .
Data from real estate consultant Anarock showed that average residential property prices in Delhi-NCR rose 29 per cent to Rs 7,200 per sq ft in the July-September quarter from Rs 5,570 per sq ft in the year-ago period.
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In Bengaluru, prices grew 29 per cent to Rs 8,100 per sq ft in the third quarter of this calendar year from Rs 6,275 per sq ft in the corresponding period of the previous year.
Hyderabad saw the maximum 32 per cent rise in prices to Rs 7,150 from Rs 5,400 per sq ft.
Median house prices in the Mumbai Metropolitan Region (MMR) rose 24 per cent to Rs 16,300 from Rs 13,150 per sq ft.
Pune witnessed a 16 per cent rise in prices to Rs 7,600 from Rs 6,550 per sq ft, while Chennai witnessed a 16 per cent appreciation to Rs 6,680 from Rs 5,770 per sq ft.
In Kolkata, median house prices rose 14 per cent to Rs 5,700 per sq ft in July-September from Rs 5,000 per sq ft during the year-ago period.
Darshan Govindaraju, director of Bengaluru-based real estate firm Vaishnavi Group, said: “The average rise in residential property prices is a continuation of a trend seen since the last few quarters and is mainly due to rising costs of inputs, including land acquisition and construction costs, along with the increasing weight of premium and luxury properties in the sales mix.
“This is driving up average house prices in Bengaluru in line with rising prices in other cities,” he added.
Angad Bedi, CMD, BCD Group, attributed the price rise to factors such as infrastructure development, robust economic activity and an increase in demand for premium housing.
“In addition, limited housing supply and inflationary pressures are contributing to rising prices,” he said.
Bedi also warned that continued price increases could eventually affect affordability and alter demand patterns in the long term.
“Average residential property prices in the top 7 cities collectively increased by 23 per cent year-on-year, from Rs 6,800 per sq ft in Q3 2023 to Rs 8,390 per sq ft in Q3 2024,” Anarock had said last week.
The consultancy firm’s data showed that housing sales fell 11 per cent in July-September to 1,07,060 units from 1,20,290 units in the same period a year ago.
The top seven cities witnessed a 19 per cent drop in new housing supply, with 93,750 units launched in July-September 2024 as against 1,16,220 units in the corresponding period in 2023.
“However, the fact that sales continue to outpace launches indicates that the supply-demand equation remains strong,” Anarock Chairman Anuj Puri said.
He noted that home sales in the third quarter declined due to high prices and the monsoon season.
“As always in this period, the ‘shraad’ period also suppressed demand to the extent that many Indians are postponing home purchases in this period.”
Overall, Puri said the real estate market is stabilizing after creating a new peak in January-March 2024.
Anarock said developers have several projects lined up during the festive quarter (October-December), during which the market is expected to see a surge in demand.
“That said, (sales) growth in the coming quarters may not be as pronounced as that seen in the last one or two years,” Puri said.
“Residential prices also seem to have peaked and are now gradually stabilizing across cities. Developers are likely to come up with various offers and discounts during the upcoming festive quarter to attract buyers.”
According to the data, MMR recorded the highest sales among the top 7 cities in the July-September quarter at 36,190 units, a drop of 6 per cent from 38,505 units in the year-ago period.
Pune saw a 17 per cent decline in sales to 19,050 units from 22,885 units during the period under review.
Housing sales in Delhi-NCR fell 2 per cent to 15,570 units from 15,865 units.
In Bengaluru, housing sales declined 8 per cent to 15,025 units from 16,395 units.
Hyderabad recorded sales of 12,735 units, a drop of 22 per cent from 16,375 units in the third quarter of calendar year 2023.
Housing sales in Kolkata declined 25 per cent to 3,980 units from 5,320 units.
In Chennai, housing sales fell 9 per cent to 4,510 units during July-September 2024 from 4,945 units in the year-ago period.
(Only the title and image of this report may have been modified by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 29, 2024 | 12:07 p.m. IS
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