Pune has recorded the highest increase in real estate prices between the months of July and September, says a report by real estate consultancy firm PropTiger. At 7 per cent, this was the highest such growth noted among the seven cities viz Delhi- NCR, Mumbai, Ahmedabad, Chennai, Hyderabad, Kolkata and Bengaluru. The price increase, the report said, was mainly due to the increase in raw material prices like steel, cement etc.
As per the report, prices in Pune in the given time had increased from Rs 5,100-5,300/sq ft recorded last calendar year to the present Rs 5,500-5,700/sq ft.
Vikas Wadhawan, Group CFO, said, тАЬWe are witnessing a modest price increase in the primary housing market. This is mainly because of the sharp rise in prices of key raw materials like cement and steel. Apart from a rising input cost, a strong revival in demand after the second wave of the Covid pandemic has put upward pressure on prices.тАЭ
Similarly, property prices in Ahmedabad rose from 5 per cent to Rs 3,600-3,800/sqft from Rs 3,400┬н-3,600/sqft. Property prices in Hyderabad rose by 4 per cent from Rs 6,100-6,300/sqft from Rs 5,900-6,100/sqft, while housing prices in Chennai saw a marginal increase of 2 per cent to Rs 5,500-5,700/sqft from Rs 5,400-5,600/sqft.
In Bengaluru, the residential properties appreciated by 6 per cent to Rs 5,900-6,100 from Rs 5,500-5,700 per square feet. Delhi-NCR saw a 5 per cent rise in prices to Rs 4,700-4,900 from Rs 4,400-4,600 per square feet.
Housing prices in Kolkata went up by 3 per cent to Rs 4,400-4,600 per square feet from Rs 4,300-4,500 per square feet.
Mumbai saw a 3 per cent increase in prices to Rs 9,900-10,100 per square feet from Rs 9,700-9,900 per square feet.
The real estate prices have been more or less constant over the past two years. The pandemic and the lockdown have dealt a heavy blow to the sector, with sales dipping during the pandemic year. However, pent up demand had seen the real estate sector rebound with a vengeance with all cities reporting brisk sales. Prices have not seen much rise but the almost doubling of steel and cement prices have cut in the profit of the realtors. However, over this year the realtors have been passing on portions of this to the consumer. Most of the realtors have talked about further rise in the days to come.
