Housing prices on average increased significantly as a result of rising building costs and suppressed demand. The Real Insight report states that compared to the year 2021, the average home price in eight major cities increased by 7% last year, reaching between Rs 6,700 to Rs 6,900 per sq ft.
According to the report, the impact of the COVID-19 pandemic on consumer demand in 2020 and 2021 resulted in a reduction in customer demand, which meant that the increase in prices of residential properties had no impact on sales in 2022.
Vikas Wadhawan, CFO of PropTiger.com, Housing.com and Makaan.com, said housing costs were relatively stable between 2016 and 2021, but began to rise in 2022 as global headwinds such as Russia’s cost of imported construction materials increased. increased. Ukraine War.
An increase in demand for newly built homes and ready-made homes also contributed to the small single-digit increase in prices, he added. He said that due to the increase in the overall cost of the building, the builders were forced to increase the basic selling price of the flats.
As per the report, Gurugram witnessed the biggest price hike of around 13%, followed by Bengaluru and Delhi-NCR with a 9% price hike and Pune at 8%. Kolkata and Ahmedabad saw an increase of 7% each.
Although the cost of inputs, especially steel, has come down slightly, the cost of other materials remains high. However, it is observed that since demand remains high, home prices will increase by only a small percentage in 2023.
frequently Asked question.
1. In which city have the prices increased the most in recent years?
Gurugram experienced the biggest price increase, around 13%.
2. Who is Vikas Wadhawan?
Vikas Wadhawan is the CFO of PropTiger.com, Housing.com and Makaan.com.
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