Prices in The Real Estate Markets of Mumbai and Bengaluru Have Increased in 2022 Due to High Demand

Mumbai:

Residential property prices in India's major cities have risen as a result of rising demand, low mortgage rates, and a rapid economic recovery from the Covid-19 pandemic.

Housing prices in these areas rose year-over-year for the first time since the second half of 2015 during the first half of 2022.

Home prices in the top 8 markets increased by 3 to 9 percent from January to June of 2022, with increases in some of the larger volume cities being particularly large.

The National Capital Region and Pune followed with gains of 7 percent and 8 percent, respectively, according to data compiled by Knight Frank India.

There has been a significant uptick in house sales since the beginning of the pandemic, and it shows no signs of slowing down despite concerns about inflation. However, according to Shishir Baijal, CMD of Knight Frank India, the performance of the broader economy and altered buyer perceptions have had a greater impact on market momentum for the remainder of the year because they dictate homebuyer income levels and demand more directly than the interest rate cycle turning during this period.

Between January and June of 2022, sales volumes reached their highest point for any six-month period since the second half of 2013.

Sales in the first half of 2022 grew by 60% compared to the same period in the previous year.

Increased house sales may be attributed to a number of factors, including rising consumer confidence, rising wages, and lowering pandemic levels that formerly made property ownership a necessary but now pose less challenges.

Even the RBI raised rates twice in a row towards the end of the first half of the year, current rates are still historically low. Price paid for inputs

Sales and price increases show that strains have been absorbed by the market.

As a strategic response to the demand spike and shift in sentiment, developers in Hl have released 1,608,006 new flats this year.

growth of 56% In the last eight years, this is the largest number of launches for any half-year period. Increases in production are attributable to a strong uptick in sales velocity rather than an increase in the total number of releases.

boosted the number of quarters up for grabs and contributed to a slight decline in unsold inventories, which stood at 4,40,117 as of June 30.

As compared to a year ago, the (QTS) level is presently 7.8 quarters down from 10.9 quarters.

The largest share of sales activity came from the metropolitan areas of Mumbai, Delhi-NCR, and Bengaluru. Among the top eight cities with the highest sales volume across all markets, the nation's financial capital accounted for 28% of the total with 44,200 houses sold.