Pan-India residential prices up 7% in January-March 2023 quarter
In just the January-March quarter of 2023, residential property prices have jumped seven percent, according to PropTiger's price tracker. CNBC-TV18's Jude Sannith finds out whether the coming quarters will offer prospective home-buyers some relief.
Sales of residential property have been on a steady up-tick since economic activity began restarting after the pandemic and so have property prices.
In the January-March quarter of 2023, residential property prices jumped seven percent, according to PropTiger's price tracker. Increased regulatory checks and rising interest rates have not stopped pent-up demand for residential housing from holding sway.
The first three months of 2023 saw 1.14 lakh houses being sold across the top-7 property markets, 14 percent higher than a year ago. Of course, steady demand pushed property prices higher.
According to PropTiger, the average weighted price of new stock in the January-March quarter was 7 percent higher than a year ago. Bengaluru has seen the biggest spike of 10 percent, followed by 7 percent in Ahmedabad. Certain micro-markets in Gurugram have seen spikes of up to 13 percent.
The outlook from PropTiger said prices could go up higher, with ready-to-move homes attracting a premium. However, experts said there are other factors at play that could make homes more expensive this year one of these is material prices. With the prospect of a cement-price hike looming just around the corner, developers might well pass it on to the buyer.
Anarock said India saw 1.09 lakh home launches in the first quarter of 2023, a whopping 23 percent rise year-on-year, and an 18 percent rise quarter-on-quarter. 36 percent of these launches were houses in the mass-market segment priced between Rs 40 lakh and Rs 80 lakh.
Developers said more launches are on the anvil since many projects had been paused to let those focus on reducing inventory.
While this increased supply could add downward pressure on prices, some predict that the recent layoffs, sluggishness in the IT sector and a hike in repo rates should it happen could also have an impact on consumer appetite. So, are home prices up? Yes. Will they go up further from here? The experts aren't too sure of that.
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