Rise in housing prices in Q3 2022


With the pandemic teaching us the value of homes and housing, more people are now actively interested in purchasing homes for themselves. This has led to a significant rise in demand and in turn an increase of supply in the real estate market. Based on these healthy market fluctuations, a steady rise in housing prices has been observed this year. With quality real estate launches by reputable developers picking momentum, the rise in housing prices in the top metro cities of the country has also been observed. Places like Kolkata, Hyderabad, Mumbai, Bangalore, Pune, Chennai and Ahmedabad are currently witnessing a steady rise in housing prices and are expected to do so in the last quarter of this year too. As per the CREDAI-Colliers-Liases Foras Housing Price-Tracker Report 2022, the housing prices has been on the rise on the back of the increased demand seen since last year, paired with rise in input prices.

While Delhi-NCR saw the highest increase in residential prices at 14 per cent, this trend was also followed by cities like Kolkata with 12 percent rise and Ahmedabad with 11 percent rise.

However, this prices appreciation is actually beneficial for homeowners, since this shows that a particular property is in demand and can give the home buyers a monetary appreciation in case of a sale in the future.

In terms of market in India currently, while Delhi-NCR has the highest rise in prices, Ahmedabad is said to be the most affordable city in terms of real estate since 2019. From 46 percent in 2010, the affordability index had witnessed a 25 percent improvement in 2019. However, with the onset of the pandemic in the early month of 2020, the affordability index improved to 20 percent in 2021. Meanwhile, the affordability index in Q3 2022, currently stands at 22 per cent.