Homes in Mumbai became 3% more expensive this year on rising construction costs

@the_news_21

Average housing prices appreciated nearly 5 per cent across eight major cities in the first nine months of this year on account of rise in input costs and a strong revival in demand, according to property brokerage firm PropTiger.com.

The weighted average prices of residential properties in primary markets across eight cities stood at Rs 6,600-6,800 per square feet at the end of September quarter, as against Rs 6,300-6,500 per square feet at the end of the December quarter, PropTiger.com said in a statement.

REA India, part of Australia’s REA Group and US-based News Corp, owns three real estate portals — Housing.com, PropTiger and Makaan.com.

”We are witnessing a modest price increase in the primary housing market. This is mainly because of the sharp rise in prices of key raw materials like cement and steel,” the company’s Group CFO Vikas Wadhawan said.

Apart from rising input costs, he said a strong revival in demand after the second wave of the COVID pandemic has put an upward pressure on prices.

”Housing prices are expected to further rise in the coming quarter on the back of robust demand, which is still strong despite the hike in the interest rates on home loans by around 2 per cent since May. Prices of key construction materials have eased but are still high as compared to the previous year,” Wadhawan said.

As per the report, housing prices in Ahmedabad rose 5 per cent to Rs 3,600-3,800 per square feet in July-September period from Rs 3,400-3,600 per square feet at the end of the 2021 calendar year.

In Bengaluru, the residential properties appreciated by 6 per cent to Rs 5,900-6,100 from Rs 5,500-5,700 per square feet.

Housing prices in Chennai increased marginally by 2 per cent to Rs 5,500-5,700 from Rs 5,400-5,600 per square feet, while Delhi-NCR saw a 5 per cent rise in prices to Rs 4,700-4,900 from Rs 4,400-4,600 per square feet.

In Hyderabad, the housing prices increased 4 per cent to Rs 6,100-6,300 per square feet from Rs 5,900-6,100 per square feet.

Housing prices in Kolkata went up by 3 per cent to Rs 4,400-4,600 per square feet, from Rs 4,300-4,500 per square feet.

In Maharashtra’s top two markets, Mumbai saw a 3 per cent increase in prices to Rs 9,900-10,100 per square feet from Rs 9,700-9,900 per square feet, while Pune witnessed 7 per cent increase in prices to Rs 5,500-5,700 per square feet in July-September 2022 from Rs 5,100-5,300 per sq ft at the end of the 2021 calendar year.

Ankita Sood, Head of Research at PropTiger.com and Housing.com said, ”Apart from inflationary pleasure, the prices have also risen on account of the premium being charged for the ready-to-move-in residential units.”