Residential Property Prices Rise In Top Eight Indian Cities: Report

Residential property prices across eight major cities in India, including Mumbai, Delhi, Chennai, Kolkata and Bengaluru, rose by 3 per cent to 7 per cent, partially due to the rise in the rates of construction materials like cement and steel, an industry report showed.

According to a report 'Real Insight Residential - Annual Round-up 2021' by PropTiger.com, housing sales increased 13 per cent in 2021 to 2,05,936 units from 1,82,639 units in the previous year. After the deadly second wave of the COVID-19 pandemic receded by the second half of 2021, the recovery of the housing sector largely synced with the recovery of other sectors.

In 2021, 2,05,936 housing units were sold, with overall sales in India's eight prime housing markets increasing to 13 per cent compared to the overall sales in 2020.

The housing markets in Ahmedabad and Hyderabad experienced maximum appreciation with an annual price hike of 7 per cent each in 2021. Moreover, prices appreciated by 6 per cent in Bengaluru and 3 per cent in Pune and 4 per cent in Mumbai. Meanwhile, Chennai, Delhi NCR and Kolkata saw a 5 per cent rise in rates.

On the other hand, sales in Chennai went up 25 per cent to 13,055 units from 10,452 units, whereas Delhi-NCR saw just a marginal increase of 1 per cent to 17,907 units from 17,789 units. Hyderabad witnessed 36 per cent growth in sales to 22,239 units from 16,400 units, whereas Kolkata saw a 9 per cent rise to 9,896 units from 9,061 units.

In Maharashtra, housing sales in Mumbai rose 8 per cent to 58,556 units from 54,237 units, whereas Pune experienced a 9 per cent increase in sales to 42,425 units in 2021 from 39,086 units in the previous year.

"The policy support from the government coupled with low-interest regime maintained by the RBI showcases good possibilities for the future as we traverse through 2022," said Aditya Kushwaha, CEO and Director Axis Ecorp.

"The overall sentiment is very optimistic, and there is a greater demand, especially in the secondary housing and luxury segment. Given the current momentum, we are planning to introduce a slew of new projects in the current quarter, including a 100-crore project in Darjeeling," he added.

India's real estate has undergone massive growth in the last year, and it seems that the coming financial year will be even better.

"The Indian real estate sector has demonstrated great resilience during the pandemic. The housing market has bounced well, and certain pockets such as Hyderabad, Ahmedabad, Delhi NCR and Pune are poised for favourable housing sales," said Vinit Dungarwal, Director at AMs Project Consultants Pvt. Ltd.

"The commercial real estate sector has also started picking up well. With the data centres being granted infrastructure status, land pockets such as Navi Mumbai, which have emerged as hubs for data centre also stand to gain from this current climate," added Mr Dungarwal.