New Delhi [India], February 28 : Housing demand in India scaled up and prices across the top eight cities surged by about 20 per cent during 2021-2023. As per a report put out jointly by Colliers, Credai, and Liases Foras, homebuyer confidence was aided by a favourable interest rate cycle coupled with a positive economic outlook.
According to the report published on Wednesday, Bengaluru, Delhi NCR, and Kolkata have witnessed the highest rise in average housing prices at about 30 per cent in 2023 compared to 2021 levels.
Bengaluru noted a significant 31 per cent increase in housing prices during 2021- 2023.
The southern city's rising streak has been largely consistent over the last two years backed by noticeable uptick in demand for residential properties near IT-localities like Whitefield, KR Puram, and Sarjapur.
Amidst significant new launches of homes, developers were able to successfully pass on the rising cost of construction in most cases, the report noted.
Overall, the unsold inventory saw a notable drop in 2021 and largely continued to remain rangebound until 2023 end, despite significant influx of new supply. During 2022 and 2023 housing markets across the major cities saw an increase in new property launches, in mid and luxury segments.
In cities like Bengaluru, Hyderabad, Kolkata, greater Mumbai region, and Pune new supply surged 2-2.5 times in the last two years, reflecting robust activity and improved developer-market sentiment.
"We expect both - housing demand and supply - to thrust forward in 2024 not only in top 8 cities but in Tier II, III regions as well," said Boman Irani, President of CREDAI National.
Looking ahead to 2024, the market is well poised to maintain its current trajectory, with the mid and luxury segments expected to thrive further, said Badal Yagnik, Chief Executive Officer, Colliers, India.
"The current state of real estate is the most productive when sales, supply, and prices are growing, and the price rise is not speculative. These factors work in harmony in a balanced and healthy real estate market," said Pankaj Kapoor, Managing Director, Liases Foras.
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