NCR property market saw highest price hikes but Mumbai still has the most expensive homes, says report

According to the data, Bengaluru’s brisk sales clip saw the city register the biggest drop in unsold inventory (23 percent) when compared to the rest of the country. As things stand, Mumbai accounts for 32 percent of all unsold homes in India, followed by NCR (18 percent) and Pune (14 percent).

Analysts say they expect prices to increase as the year progresses. “We expect credible developers to see higher sales this year as end-users are discerning about the developer's reputation,” said Ramesh Nair, CEO (India), Colliers. “There can be a meaningful increase in prices over the next 6-9 months in the range of 5-0 percent, across most markets.”

A range of reasons has been put forth for steadily increasing property prices, from demand-driven hikes to the sudden spurt in raw material costs driven by supply chain crunches. Still, developers say there are prospects of price cuts, provided raw material prices see some reduction.

“CREDAI sincerely hopes manufacturers will pass on price cuts to end-users,” said Harsh Vardhan Patodia, President, CREDAI National. “This will help real estate developers negate increased construction costs over the last two years, which will help prospective homebuyers.”