Why Do Property Prices in India Continue To Increase Despite Robust Demand and The Launch Of New Real Estate Projects in 2022?

The Indian real estate business has remained robust throughout the years owing to the Indian populace's very robust desire for housing. In spite of adversity, the real estate industry in India has managed to recover and astound even the most doubters with its booming revival.

The year 2022 was amazing for India's real estate market, and 2023 is anticipated to be even better.

According to a study on the Indian real estate market, home prices in India's top eight cities continue to climb at a 6% annual pace, fuelled by robust housing demand and new product launches by real estate developers.

According to the report, residential costs in Delhi-NCR climbed by almost 15% annually, followed by rises of approximately 12.5% and 11.5% in Kolkata and Ahmedabad, respectively.

This is also the third straight quarter in which prices have increased year-over-year across all marketplaces.

With the festiveseason expected to stretch through the end of 2022, real estate sales are expected to rise while unsold inventories decline. After a break induced by the pandemic, the Indian real estate market has resumed a steady pace and is expected to reach equilibrium in the first half of 2023.

After a period of relative inactivity, the third quarter of 2022 saw the debut of approximately 90,000 additional units in eight Indian cities, indicating an increase of roughly 45 percent year-over-year. Since the beginning of 2022, interest rates on loans and input costs have risen.

As a result, unsold inventory in Hyderabad increased further, whilst sales in Mumbai Metropolitan Region (MMR), Ahmedabad, and Bengaluru fell by more than 40% year-over-year.

In 2022, the housing market in the eight main cities has regained relative stability after two years of volatility. Inflation and growing input costs have pushed an upward strain on property prices in India. While residential activity remains healthy, the salaried class, which comprises a substantial share of homebuyers in India's top cities, may be affected by recessionary restraints.

Despite rising interest rates, the performance of Indian residential real estate has surpassed pre-pandemic levels and reached a new high during the July-September quarter thanks to a sustained demand resurgence.