Property Prices In 50 Cities Increase By 7.1% Year-On-Year In Q3 FY23: NHB Residex

Makaan Bhai — Wed, 08 Mar 2023 04:04:51 +0000

Mumbai : Residential Property Prices In 50 Cities Recorded An Increase Of 7.1 Per Cent Year-On-Year During The Quarter Ended December 31, 2022 As Compared With 4.5 Per Cent A Year Ago, According To Residex, A Housing Price Index (HPI) Released By The National Housing Bank (NHB)

NHB Residex Publishes Three Housing Price Indices: ‘HPI At Assessment Prices’, ‘HPI At Registered Prices’ And ‘HPI At Market Price For Under-Construction Properties’.
‘HPI At Assessment Prices’ Tracks The Movement In Prices Of Residential Properties In 50 Cities On Quarterly Basis With FY 2017-18 As The Base Year And Is Based On Valuation Prices Of Properties Collected From Primary Lending Institutions.
Out Of The 50 Cities, 44 Cities Registered Increase In The Index Whereas Six Cities Registered Decline On An Annual Basis. HPI of Gandhinagar Witnessed an Increase of 21.4 Per Cent While Ludhiana Recorded a Decline of 11.6 Per Cent.

All The Eight Major Metros Of The Country Viz., Ahmedabad (14.4%), Bengaluru (8.0%), Chennai (8.7%), Delhi (1.8%), Hyderabad (10.2%), Kolkata (7.4%), Mumbai (4.4%) & Pune (7.2%) Recorded Increase In The Index On An Annual Basis.
On A Quarter-On-Quarter Basis, The 50-City Index Registered An Expansion Of 1.5% In October-December 2022 As Against 1.2% In The Previous Quarter. The Index Is Showing An Increasing Trend On Quarter-On-Quarter Basis Since June-21.

The Index Recorded Increase In 40 Cities Out Of Top 50 Cities With Kochi Recording The Highest Sequential Improvement Of 6.4%, While Ludhiana, Delhi, Dehradun, Nagpur, Navi Mumbai, Raipur, Bhiwadi, Bidhan Nagar, Howrah, & New Town Kolkata Recorded Sequential Decline In The ‘HPI At Assessment Price’ During The Quarter.
The ‘HPI At Market Price For Under-Construction Properties’ Computed Using The Quoted Prices For Under-Construction And Ready To Move Unsold Properties For 50 Cities Also Recorded An Annual Increase Of 10.8 Per Cent In October-December 2022 Quarter As Against 2.9% A Year Ago. Lucknow Witnessed Highest Increase Of 41.2 Per Cent While Rajkot Saw A 3.4 Per Cent Decline.
On A Quarter-On-Quarter Basis, The 50 City Index Witnessed An Increase Of 3.1% During The Quarter Compared To 3.7% In Previous Quarter. The Rising Cost Of Construction Is Showing An Impact On The Asking Prices Of The Property.
According To NHB Residex, There Has Been A Sustained Increase In The Indices Post Covid-19. The Improvement Has Been More Prominent In The Tier-II And Tier-III Cities.

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Information Source : Internet

Real Estate Projects Becoming Unviable Due to High Construction, Capital Cost: Tata Realty MD & CEO

Makaan Bhai — Mon, 09 Jan 2023 01:38:00 +0000

When Asked About the Factors Making Projects Unviable, Dutt Pointed Out, “Real Estate Requires a Lot of Capital in India, First of All to Acquire Land. In Major Cities Such As NCR, Mumbai And Bengaluru, It (Land Cost) Is Almost 50 Per Cent To 80-85 Per Cent Of The Project Cost.”

Mumbai : The Development Of Real Estate Projects In India Is Becoming Unviable Due To High Cost Of Land, Capital And Construction, Along With Other Economic Uncertainties, Said Sanjay Dutt, MD & CEO Of Tata Realty And Infrastructure Ltd. Dutt, Who Also Heads Tata Housing, Said The Government As Well As Judiciary Should Hold Accountable All Stakeholders That Are Involved In Approval And Development Of Real Estate Project To Make Things Easier.

Real Estate Projects Are On The Verge Of Becoming Unviable, He Remarked.
When Asked About the Factors Making Projects Unviable, Dutt Pointed Out, “Real Estate Requires a Lot of Capital in India, First of All to Acquire Land. In Major Cities Such As NCR, Mumbai And Bengaluru, It (Land Cost) Is Almost 50 Per Cent To 80-85 Per Cent Of The Project Cost.”
He Mentioned That It Takes Another 2-3 Years In Designing The Project And Getting All Regulatory Approvals To Start Construction And Marketing Activities.
Dutt Said The Cost Of Capital Varies A Lot, From 8.5 Per Cent For Reputed Builders To 18 Per Cent For Non Reputed Ones. Elaborating Further, He Said The Developers Launch Projects At A Price Based On The Current Input Cost, But The Same Can Rise Significantly During The 5-6 Years Construction Period.
“You Decide to Launch Today at A Price but You Don’t Know the Cost of Steel and How Much It Will Change in The Next Five or Six Years. That You Have To Absorb, But You’ve Already Sold The Project,” Said Dutt. He Said The Builders Are Forced To Absorb Increase In Costs Of Construction Materials And Interest Among Others. “So Your Project Is Constantly Vulnerable To Market,” He Said, Adding That The Builders Do Set Aside Some Fund For Contingencies But The Market Setbacks Could Be Much Higher.
Moreover, He Said The Government Is Bringing Reforms At A Fast Pace For Boosting Growth Of The Country. “There Are Constant Changes And Constant Changes Affect Projects,” He Said And Cited Some Examples Where Changes In Building Rules Led To Increase In Cost Of Projects.

Information Source : Internet

Real Estate Price – Makaan Bhai

Property Prices In 50 Cities Increase By 7.1% Year-On-Year In Q3 FY23: NHB Residex

Real Estate Projects Becoming Unviable Due to High Construction, Capital Cost: Tata Realty MD & CEO