Ind-Ra Report – Housing prices may ascend by 8% this fiscal

​”The current housing sales uptick and increased demand are 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,” Ind-Ra official statement.

On Monday, Delhi-based India Ratings and Research (Ind-Ra) announced that it expects housing prices to rise by 8 percent this fiscal, mainly due to a rise in demand from end-users.

“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,” the rating agency said in a statement.

Furthermore, the surge in the housing sales in India has not been accompanied by a sharp rise in prices so far, it added.

“After a prolonged period of decline, prices stabilized in the past few years. Ind-Ra expects the price appreciation of residential property in FY23 to be around 8 percent at the pan-India level, led by Bengaluru, Mumbai, Pune, and Hyderabad,” the statement noted.

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