According to a survey, the average price growth across India's major real estate markets was close to 7% YoY during the first three months of 2023. This indicates that housing prices in India have increased significantly during this period.
According to the survey findings, the average rate of new homes construction increased in each of the local markets included in the study. For example, property prices in Bengaluru have increased by an average of 10% in the past year, making that market the one with the most significant upward trend in property prices. Pune and Ahmedabad followed closely behind this southern market in terms of price increase. These markets saw a rise of 8% and 7% in the average property rates during this period.
THE MARKET IS DOING WELL
"Real estate has consistently been one of the best-performing asset classes over the long term," said a Group CFO, commenting on the same topic. "With prices expected to go up further, it might be a good time for fence-sitters to take the leap and buy their dream home," also stated. Having said that, one must keep in mind that the decision to acquire a home is often the most expensive purchasing decision a family will make in their lifetime. Before settling on one option, it is better to consider everything with advantages and disadvantages because it is necessary.
The paper underscores the fact that the cost of purchasing a house in India continues to rise due to various factors, including the continual growth in the cost of raw materials and labour, the growing demand for homes following the implementation of COVID, and the discontinuation of government-funded subsidy schemes in March of this year. In addition, the Reserve Bank of India has temporarily stopped raising interest rates; nevertheless, inflation continues to be a concern, and the central bank may increase the benchmark lending rate in the next cycle. This might further increase the buyer's expenses due to rising borrowing costs on home loans.
THE AVERAGE COST OF PROPERTIES HAS ALSO INCREASED
A Head of Research at real estate companies made the following statement when discussing current buying patterns: "Property prices in Indian cities have been growing at a fast pace of 6-7% since the previous year with a renewed thrust on homeownership." In addition to an increase in the cost of inputs, an increase in prices has been caused by a restricted supply of the appropriate product and a lack of ready-to-move-in projects for the end user.
Also stated, "Interestingly, while the weighted average prices have grown by 6 percent YoY, in the March quarter, key micro-markets in the cities of Gurugram, followed by Bengaluru, have seen YoY growth of 13 percent and 10 percent, respectively." We anticipate that property prices will continue to climb, albeit within a narrow range, due to the present market patterns of demand-supply mismatch. Within this range, the quality section of the ready-to-move-in market will trade at a premium.
The survey also showed that the average price paid per square foot in several major cities, including Ahmedabad, Bengaluru, Delhi NCR, Mumbai, and Pune, has seen a substantial rise in recent years.
Source: Online, and the data is taken from other websites.