As per property brokerage firm PropTiger.com, housing prices rose by 3-7% across eight major cities.
Due to soaring rates of construction raw materials like cement and steel, housing prices increased last year.
Furthermore, housing sales rose 13% in 2021 to 2,05,936 units from 1,82,639 units in 2021 according to ‘Real Insight Residential – Annual Round-up 2021’, PropTiger.com owned by Australia’s RA group.
Soaring housing prices
Moreover, new launches of the housing units soared 75% to 2.14 lakh units in 2021 compared to 1,22 lakh units in 2020.
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com, said, “Beyond the numbers which speak for themselves, what is remarkable is the resilience of the real estate market in India. Despite multiple waves of the pandemic, which resulted in multiple lockdowns, the residential real estate market has not only bounced back but is also on the cusp of a cynical upturn.”
Furthermore, Agarwala expressed confidence about the sector coming into 2022, with policy support from the government with a low-interest rate regime maintained by the RBI.
Soaring housing prices and sales across eight major cities in India
Ahmedabad and Hyderabad housing markets saw much appreciation with an annual price hike of 7% in 2021.
Bengaluru witnessed a 7% increase in sales to 24,983 units in 2021 from 23,458 units during 2020.
Furthermore, increasing housing prices in Bengaluru by 6% and 3% in Pune and 4% in Mumbai are appreciated.
PropTiger’s report stated that sales soared 39% in Ahmedabad to 16,875 units in 2021 from 12,156 units in 2021.
Chennai housing sales soared 25% to 13,055 units from 10,452 units. Nevertheless, Delhi-NCR witnessed a marginal increase of 1% to 17,907 units from 17,789 units.
Mumbai housing sales increased 8% to 58,556 units from 54,237 units. Furthermore, Pune sales increased by 9% to 42,425 units in 2021 from 39,086 units in 2020.
Lastly, housing sales in Hyderabad soared 36% to 22,239 units from 16,400 units, while Kolkata witnessed a 9% increase to 9,896 units from 9,061 units.
What do industry experts say?
PropTiger said, “Increase in raw material price pushed property prices up in 2021. Consistent increase in raw materials prices is pushing up property prices, with all eight prime residential markets covered in the report showing annual increase in per square foot price of new properties.”
Business Head PropTiger.com, RajanSood, “Developers have been quick to respond to the positive changes in buyer sentiment, as evidenced by the offers available in the market, especially during the festive season of 2021, which resulted in improved metrics for both, demand and supply.”
Furthermore, he added, “Basis the data available with us, it seems very likely that we will see an increase in prices in 2022, even as the inventory overhang continues to decline in 2022. The biggest trend we foresee is that the real estate market will continue to consolidate its growth in 2022 as well.”
Increasing housing prices across eight cities is much appreciated. Growth in sales and prices is positive for the Indian economy.