Home prices set for steep 6-10% jump this fiscal, 3-5% next: report
The Hindu
The unsold inventory level is down to 2.5 years from four years pre-pandemic, and this has credit profile of the large realtors strengthening
Home prices across the top six cities are set to jump 6-10% this fiscal and 3-5% in the next financial year because of a steep rise in raw material, labour and land costs, and relatively favourable demand-supply dynamics, a report said on Thursday.
The report by Crisil also said large residential realtors are on course to log a robust 25% sales growth in 2022-23 and 10-15% in the next fiscal.
The unsold inventory level is down to 2.5 years from four years pre-pandemic, and this has credit profile of the large realtors strengthening, the report said.
The agency expects residential prices to rise 6-10% this fiscal and a further 3-5% in the next across the top six cities due to the steep increase in raw material, labour and land costs.
This, however, has not impacted demand for residences adversely, given a strong preference for larger homes as the hybrid working model continues in many sectors, it added.
The top six realty markets are the Mumbai Metropolitan Region (MMR), the National Capital Region (NCR), Bengaluru, Pune, Hyderabad, and Kolkata. The companies covered by the report are Brigade Enterprises, DLF, Godrej Properties, Kolte-Patil Developers, Macrotech Developers, Mahindra Lifespace Developers, Oberoi Realty, Prestige Estates Projects, Puravankara, Sobha and Sunteck Realty.
The report said these realtors reported sales of ₹31,000 crore in the first half of this fiscal, which is equal to their entire FY2020 haul, and should close this fiscal at ₹65,000 crore, up a whopping 110% from the pre-pandemic level.
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