India’s housing prices increase 7% during 2nd quarter of 2023

V Nagarajan

Average housing prices in Pan India rose 7 per cent Year-on-Year at Rs9,625 per sq ft during Q2, led by robust housing demand which in turn was led by continued positive homebuyer sentiment amidst stable interest rates, according to a joint survey by Colliers, Credai and Liases Foras.

All the eight cities except Mumbai Metropolitan Region (MMR) saw an increase in housing prices with Kolkata witnessing the steepest rise at 15% YoY, closely followed by Delhi NCR at 14%. On the back of sturdy sales and continued positive market sentiment, there is a consistent rise in new launches. Delhi NCR witnessed the steepest drop in unsold inventory levels at 7% YoY, signalling revival in market fundamentals.

In Ahmedabad, in Q2 2023, housing prices in the city rose 10 per cent YoY largely led by Jantri rate hike. Moreover, the government has proposed a 15-20 per cent increase in development charges, which will further push the housing prices.

In Bengaluru, overall housing prices in Bengaluru increased 10 per cent YoY during Q2 2023, with prices in periphery and outer western region witnessing the highest rise of

42 per cent YoY led by upcoming high-end projects. The 3BHK units saw the highest rise in prices with a 12 per cent rise YoY followed by 2BHK units. Majority of the unsold units are in periphery and outer east with 35 per cent share followed by periphery and outer south with 27 per cent share.

In Chennai, overall housing prices in Chennai increased 6 per cent YoY amidst healthy demand. Expansion of new metro corridors is likely to further drive residential demand and prices in Ambattur, Madhavaram and west Poonamallee region. Prices for 4BHK configurations rose the highest at 19 per cent on a YoY basis.

Delhi NCR saw a 14 per cent YoY rise in housing prices in Q2 2023. The newly developed Dwarka Expressway and the upcoming 50 km 6-lane highway are likely to boost residential demand in Delhi, Gurugram, Ghaziabad and Noida. With a 7 per cent dip YoY, unsold units in Delhi NCR continues to drop for the two quarters. About 94 per cent of the total unsold units in the region are under-construction. Maximum number of unsold units are in Noida.

In Hyderabad, Overall, housing prices surged 13 per cent YoY with central Hyderabad witnessing the highest rise at 69 per cent YoY amidst launch of new high-end projects. Prices of 4 BHK units saw the highest increase at 19 per cent YoY, followed by 1 BHK units at 16 per cent YoY. Unsold inventory increased by 24 per cent YoY.

In Kolkata, during Q2, overall housing prices increased 15 per cent YoY in the city, highest across the top eight cities in India. Outer Kolkata witnessed a 1.8X YoY price rise due to upcoming high-end projects. Prices of 3 BHK units saw the highest rise at 18 per cent YoY, followed by 2 BHK units owing to the rise in demand in these configurations.

In MMR, average housing prices in the region saw a marginal dip of 3 per cent YoY led by rising unsold inventory. However, prominent micro markets within the region saw a price rise of 3-5 per cent YoY, on the back of surge in demand. Western and extended central suburb saw significant new launches during the quarter, leading to a rise in unsold inventory levels by 21 per cent YoY.

My father died recently without leaving any Will and my mother wishes to pass it on to my brother. What is the legal position for the inherited property? S Suryaprakash, Sharjah.

According to Hindu Succession Act, the self-acquired property of your father will be equally distributed with your brother as you are all class I legal heirs. Your mother cannot arbitrarily decide as she has no right to bequeath the property to your brother as only the owner of the property to the inherited assets who can do so.

My relative is planning to gift a commercial property located in Bengaluru. She is a PIO and settled in US. Are there any restrictions in this regard? Babu Sampson, Dubai.

There are no restrictions at all as the RBI has given general permission to Persons of Indian Origin to transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India, who is a citizen of India or to a person of Indian origin resident outside India.

In Pune, housing prices increased 11% YoY in Q2 amidst rising demand for high-end residential units. Housing prices in Camp and Nagar Road saw the highest rise in the city at 13% YoY each. Chinchwad continues to account for the highest share of unsold units with 41% share.