The six major metro cities in India that include Delhi, Mumbai, Pune, Bangalore, Chennai, Kolkata & Hyderabad will witness at least 3-5% as per the report.
The primary reason for the price hikes will be the increased cost of the raw material, labour and the supply-demand dynamics. Also, the reduced levels of real estate investors as compared to the last fiscal year are affecting property prices significantly.
According to the report, The developers are on the trajectory to scale up property sales by 25 for the financial year 2022-23. Moreover, the sales for the upcoming financial year 2023-24, will rise by 15% more than that of the FY 2022-23.
The increase in property prices is expected to have the minimum impact on the demand for residential properties, as there is strong buying intent for premium housing in the six major cities in India.
The report published by CRISIL was based on a detailed analysis of some of the top developers, including Godrej Properties, Oberoi Realty, Mahindra Lifespace Developers, and DLF among others.
For the first half of FY 2022-23, the property sales from these developers were Rs 31,000 crore and are likely to close at Rs 65,000 crore by the end of the financial year.
The increase in property prices has been anticipated by experts from the start of the financial year because of the rising construction prices. The cost of cement and steel rose significantly by 20% at the start of FY 2022-23. And the average construction cost increased by 10-12 per cent in the second half of the year.
The reduced inventory and the increased demand for premium housing units is the positive indication for the robust sales of the properties for the upcoming FY 2022-23
