Housing costs elevated by as much as 11 per cent yearly throughout eight main cities throughout January-March interval of this 12 months because of an increase in demand for residential properties and a pointy hike in charges of building uncooked supplies, in keeping with a joint report by CREDAI, Colliers and Liases Foras.
Delhi-NCR witnessed highest rise in housing costs by 11 per cent to Rs 7,363 per sq ft throughout January-March 2022 as in comparison with the year-ago interval, as per the primary version of Housing Price-Tracker report by realtors physique CREDAI, actual property marketing consultant Colliers and knowledge analytics agency Liases Foras.
Hyderabad witnessed 9 per cent enhance in housing costs to Rs 9,232 per sq. ft, whereas Ahmedabad noticed a 8 per cent appreciation to Rs 5,721 per sq. ft and Kolkata 6 per cent to Rs 6,245 per sq. ft.
Housing costs in Bengaluru, Chennai and Mumbai Metropolitan Region (MMR) rose by 1 per cent every at Rs 7,595, Rs 7,107 and Rs 19,557 per sq. ft, respectively.
In Pune, costs of residential properties went up by 3 per cent to Rs 7,485 per sq. ft throughout the first quarter of this calendar 12 months.
“A pick-up in housing demand across most cities and skyrocketing prices of raw materials for almost two years, led to YoY increase in housing prices, surpassing pre-COVID levels across all eight metro cities,” a joint assertion stated.
The common residential costs in India rose by 4 per cent YoY (year-on-year) throughout January-March 2022 after a chronic slowdown, indicating that the residential market is on its path to restoration.
Colliers India CEO Ramesh Nair expects an additional enhance of 5-10 per cent in housing costs over the subsequent 6-9 months.
“It is exciting to see India’s residential market performing well and beating market expectations after so many years. End-users have faith in the market, and we expect credible developers to see higher sales this year as end-users are discerning about the reputation of the developer,” he stated.
Nair stated there may very well be a significant enhance in costs over the subsequent 6-9 months within the vary of 5-10 per cent throughout many of the markets.
Pankaj Kapoor, Managing Director, Liases Foras, stated, “January-March quarter 2022 witnessed the new launches back to the pre-COVID level. The coming quarters see an increasing flow of new launches. The fresh supply will induce an improvement in volumes. Thus, the sales will continue to grow despite the recent increase in the interest rates”.
CREDAI President Harsh Vardhan Patodia stated, “Price hike has been an ongoing issue, but we are pleased with the finance minister and the government’s intervention to control the rise in the cost of raw materials and in turn control inflation as the Indian economy had stayed resilient while grappling the strains of cost inflation of raw material prices in the last 18 months.” The measures to cut back import duties on metal merchandise, iron ore, and metal intermediaries will assist in discount in costs of metal merchandise, resulting in reducing of price of building of actual property tasks, he added.
The reducing of customized duties on coal merchandise will additional help the manufacturing of cement and shall assist management the skyrocketing costs of cement, Patodia stated.
“It will be important to capitalise on the current situation and help the sector back to a U-shaped recovery and the reduction in prices of fuel tax to pre-COVID levels will provide an added impetus to help all sectors agnostic of their business and it’s respective consumers,” the CREDAI President stated.
Patodia steered the state governments to cut back duties on gasoline.
CREDAI sincerely hopes that producers will move on the value cuts to end- customers.
“This will help the real estate developers negate increased construction costs over the last two years, which will only help prospective homebuyers,” Patodia stated.
Source: www.financialexpress.com”