The average prices of rental units in the country have shot up by nearly 5 percent since the beginning of 2022. The average cost per square foot has shot up from Rs 6,300-6,500 at the end of the December quarter in 2021 to Rs 6,600-6,800 now in the eight major cities in India. Major cities in India have seen an appreciation of 2-7 percent in the housing market. According to a report by PropTiger.com, the primary reason behind this increase is the increasing rate of raw materials and a revival in demand for residential units.
According to PropTiger.com’s Real Insight Report, the mean prices for new supply and existing inventory of housing units have gone up by 3 to 13 percent (compared to the same period last year) in the eight major Indian cities in the third quarter of the 2022 calendar year.
Check the increased average housing prices for various cities here:
Chennai: Prices saw a slight increase of 2 percent, with per square foot cost going from 5,400-5,600 to 5,500-5,7000.
Kolkata: Following an average 3 percent rise in the prices of residential units, the cost per square foot in Kolkata increased from Rs Rs 4,300-4,500 to 4,400-4,600.
Mumbai: Similar to Kolkata, Mumbai recorded a 3 per cent average increase in the cost of housing. From Rs 9,700-9,900 per square foot last year, the price went up to Rs 9,900-10,100 per square foot.
Hyderabad: From Rs 6,100-6,300 to Rs 5,900-6,100 per square foot, housing prices increased 4 percent in Hyderabad.
Delhi-NCR: This region near thkept up with the national average, marking a 5 percent rise in prices. The average cost of one square foot went from Rs Rs 4,400-4,600 to Rs 4,700-4,900.
Ahmedabad: Also in line with the national average, Ahmedabad recorded a price increase of 5 percent. Here, the rate of each square foot of floor area in housing units climbed to Rs 3,600-3,800 per square foot from Rs 3,400-3,600.
Bengaluru: Recording the second-highest increase in residential prices in the country, Bengaluru saw a price hike of 6 percent. The per square foot rate went from Rs 5,500-5,700 to Rs 5,900-6,100.
Pune: Pune recorded the highest increase in real estate prices in the country. Here, prices went up by 7 percent, jumping from Rs 5,100-5,300 per square foot at the end of 2021 to Rs 5,500-5,700 in July- September 2022.
Key micro markets within some of these cities recorded higher rise in rate compared to the city average, especially in places like Hyderabad, Bengaluru, and Gurugram in Delhi-NCR.
Speaking about the reason behind the rising costs, Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com and Makaan.com said that it is primarily because of the sharp rise in prices of key raw materials like cement and steel. “Apart from rising input cost, 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,” he added.
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Source: News18