Stable Housing Prices Signal Boost for End-User Demand
Housing prices in major Indian cities stabilized in early 2023, despite modest growth in select regions. The moderation follows a significant surge and is expected to attract end-users. Notable regional increases were seen in Bengaluru, Hyderabad, Ahmedabad, and Kolkata. A decline in sales indicates a changing market dynamic.
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In a recent report by PropTiger, housing prices in key Indian metros like Mumbai, Delhi, Chennai, and Pune remained steady during the first quarter of 2023. Conversely, cities like Bengaluru and Hyderabad experienced a 5% rise, while Ahmedabad and Kolkata saw a 4% increase.
The data, compiled by PropTiger, part of REA India owning Housing.com, pins stable prices to a market correction following the previous years' surge. This trend is believed to entice genuine end-users back into the market by curbing speculative activities, as revealed by Dhruv Agarwala, Group CEO.
Analysis from different stakeholders, such as Angad Bedi of BCD Group and Umesh Gowda of Sanjeevini Group, suggest stabilization and lowering interest rates may revitalize the market. Observers note a notable decline in sales volume, prompting a potential rise in first-time buyer participation.
(With inputs from agencies.)
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