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Pune saw 5 percent rise in housing prices to ₹7,681 per square foot during the April-June quarter, according to a report.
Realtors' apex body Credai, real estate consultant Colliers India and data analytic firm Liases Foras released a joint report on 'Housing Price-Tracker Report 2022' for eight major cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.
Prices of units under construction have been on the rise since last year, increasing about 5 percent YoY, the report showed.
As per the report, prices of 2 BHK properties have shown maximum increase of 5 percent YoY indicating healthy demand for this category. Kothrud and Baner area saw the maximum surge in housing prices at around 9-10 percent YoY range.
Despite rising prices and an increase in new launches in the last few quarters, unsold inventory saw a dip in majority of the cities.
Unsold inventory dropped 13 percent on a YoY basis signaling improved market activity and buyer confidence in Pune, it said. A resurgence in demand for residential real estate has led to an increase in prices across the top eight cities.
Speaking about other cities, Bengaluru witnessed the steepest decline of 21 percent YoY in its inventory overhang, led by higher sales. Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, which was led by significant new launches. MMR still accounts for the highest share in unsold inventory at 36 percent, followed by 14 percent in Delhi- NCR.
"Housing prices did not rise much in the last one decade. Builders have been operating at a very thin margin. With the rise in prices of key building materials, real estate developers have no option but to pass on the burden to customers. However, large and credible players are witnessing better demand than others, so they are commanding a premium in the market," Pankaj Pal, Group Executive Director, AIPL, said.
The monetary policy committee of the Reserve Bank of India (RBI) had unanimously decided to raise the repo rate by 50 basis points to 5.40 per cent in order to contain the persistently high inflation. The latest hike takes the repo rate above pre-pandemic levels of 5.15 per cent. Close on the heels of RBI's rate hike, many banks and housing finance companies too have followed suit and raised lending rates. This is expected to raise EMIs for loan takers.