Indian housing prices increase 10% in the third quarter of 2023

India’s housing prices across the top eight 1ndian cities increased incessantly at 10% YoY during Q3 this year led sturdy housing demand amid positive home buyer sentiment and stable interest rates. All eight major cities experienced a notable increase in housing prices, with Hyderabad leading the pack at 19% YoY rise, closely followed by Bengaluru at 18% on an annual basis. The housing market is likely to further firm up by the end of 2023, driven by likely strong momentum during the festive season fuelled by positive market synergies in the form of attractive incentives, lucrative schemes for the homebuyers, and new launches in an already upbeat market, according to a joint survey by Credai, Colliers and Liases Foras.

“Homebuyer sentiments have been quite positive in 2023, playing a huge factor in not just the volume of housing registrations, but also indirectly having a cascading impact on increasing housing prices.  On the back of a stabilised economy, job security, stable lending environment, the sales momentum will continue, with sustainable development and green housing expected to lead the next growth phase in the industry. Developers have also been at the forefront to ensure that it remains a conducive buying environment, facilitating enhanced transparency and providing financial incentives that added to the overall appeal of purchasing homes,” said Boman Irani, President of Credai National.

The top eight cities include Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, MMR, and Pune to launch high-end projects, which pushed housing prices for under-construction units northward in markets like Kolkata, Hyderabad, Delhi NCR, and Bengaluru.

Alongside increasing sales, the top housing markets of Bengaluru, Hyderabad, Delhi NCR, and MMR saw a surge in new property launches, with a notable emphasis on the mid and luxury segments. The mid-segment accounted for the largest share of unsold units at 32%, closely trailed by the affordable segment. However, there was a 1% quarterly drop in unsold inventory, led by favourable market dynamics as of end of September 2023.  

“Tracing the strong streak of sales momentum with industry consensus, sales estimates already reaching closer to 2022 levels, 2023 is expected to close stronger than 2022. Furthermore, developers are increasingly targeting sustainable projects, with homebuyers’ inclination towards eco-friendly living, affirming a green future for the country,” Badal Yagnik, Chief Executive Officer, Colliers, India.  “Last year, the housing market grew by 35%. The sales in the first nine months of the current year grew further by 11% from the previous year. With a 10% increase in the prices, the housing market is at its most productive phase in India; sales, new supply, and prices are witnessing healthy growth”, said Pankaj Kapoor, Managing Director, Liases Foras”.

Strong demand continues: The unsold inventory in Delhi NCR dropped 7% YoY, indicating a steady momentum in sales in this region. Interestingly, the dip in unsold stock has been seen for the third consecutive quarter this year, reflecting improving market fundamentals. Housing prices in MMR rose marginally in Q3 2023.

The average housing prices in MMR recorded a notable 2% surge on a sequential basis during the quarter ended September 2023. Navi Mumbai sub-market stood out, with the highest YoY price rise at an impressive 11% in the region. At the same time, the region saw a substantial surge in new launches, especially in suburban and peripheral sub-markets such as western and central suburbs.

I have a house in Pune which I want to give it to my daughter through a Will after my demise.  Can I do that when I have a son who has his own assets?  Avinash Rana, Sharjah.

You can do so but you will have to specify reasons for not offering to your son to avoid legal disputes later.  When you are alive, it is better to execute a gift deed and give it to her.

I have invested in land and apartment which I would like to sell and repatriate the sale proceeds to Gulf.  Can you guide us?  Satish Chandran, Dubai.

You can repatriate up to two residential units after a period of two years of investment in India but you cannot sell land and repatriate the proceeds.  The sale proceeds are credited to your NRO account and every year up to a limit of $1 million can be repatriated by way of sale proceeds and rental income.   

V Nagarajan