Housing Prices may Rise 8% this year: Ind-Ra

According to the estimates of India Ratings & Research, housing prices this year can see an increase of 8%. This growth could be mainly due to an increase in demand from end-users. 

The rating agency said in a statement on Monday,  "The current housing sales uptick and increased demand is the end user-driven and not speculative. Hence, the hike in prices will be sustainable and is likely to be incremental. Prices were up 6 percent pan-India in FY22."

In addition, it added, the surge in housing sales in India has not been accompanied by a sharp rise in prices so far. Ind-Ra said in the statement that after a prolonged period of decline, prices stabilized in the past few years. It also expects the price appreciation of residential property in FY23 to be around 8% at the pan-India level, led by Bengaluru, Mumbai, Pune, and Hyderabad.

Ind-Ra expects housing sales to rise by around 12% year-on-year in FY23.  It said in a statement that housing sales increased 42% year on year on a pandemic-impacted lower base in FY22, for the top real estate clusters. In FY23, Ind-Ra expects well-known and trusted developers to witness better sales, and affordable housing segments to continue to claim around 50% share of the total sales.