Housing prices up 5% YoY amidst healthy demand: CREDAI – Colliers - Liases Foras| Housing Price-Tracker Report 2022

•All the eight cities continue to see an increase in prices as in the previous quarter

• Delhi-NCR witnessed the highest price increase at 10% YoY

• Bengaluru witnessed the steepest drop in unsold inventory, at 21% YoY

• More than 90% of the unsold stock lies in under-construction units

A resurgence in residential demand has led to a 5% increase in prices across the top eight cities (Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad) while registering a marginal decline in unsold inventory during Q2 2022. Residential prices, which have surpassed pre-pandemic levels, have been seeing an upward trend led by rising demand amidst rising prices of construction materials. Delhi-NCR saw the highest increase in residential prices at 10% YoY, followed by Ahmedabad and Hyderabad with 9% and 8% YoY increase respectively.

The sales momentum that started in the latter part of last year continued in Q2 2022 as well, led by pent-up demand and attractive pricing. Hence, despite rising prices and an increase in new launches in the last few quarters, unsold inventory saw a dip in the majority of the cities. Bengaluru witnessed the steepest decline of 21% YoY in its inventory overhang, led by higher sales. Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, which was led by significant new launches. MMR still accounts for the highest share in unsold inventory at 36%, followed by 14% in Delhi- NCR and 13% in Pune.

Mr. Harsh Vardhan Patodia, President of CREDAI National stated, “The central bank continues to increase repo rates to offset the impact of inflation and banks are expected to increase loan interest rates including that of home loans. As captured in this report, the housing prices have increased between 2 – 5% across cities, as materials and labour costs continue to remain high. We may see a marginal dip in demand due to increasing interest rates, but I am confident that the sales will continue to grow across segments from September, as we enter the festive season”.

“Rising homeownership amongst millennials supported by higher disposable income and willingness to upgrade to larger spaces equipped with better amenities have sparked a sharp growth in housing demand in the last few quarters. Demand for self-sustained properties replete with best-in-class amenities has also been increasing post-pandemic. These have led to strong growth in housing sales in the last few quarters. Prices have also seen a 5% rise on YoY basis.

RBI has increased the repo rate amidst inflationary pressures and banks have already begun increasing the lending rates. However, the upcoming festive season is likely to keep the market sentiment high resulting in higher sales.” said Ramesh Nair, Chief Executive Officer | India & Managing Director, Market Development | Asia, Colliers.

“Price to remain range bound. With discounted EMI schemes, we see early signs of developers absorbing the impact of increasing interest rates. Sales volumes are likely to improve as we see growing new supply with festive offers, said Pankaj Kapoor, Managing Director, Liases Foras".

Pan India residential prices Q2 2022–

City	Average Price 2 Q2 2022	QoQ Change	YoY Change
Ahmedabad	5,927	4%	9%
Bengaluru	7,848	3%	4%
Chennai	7,129	0%	1%
Hyderabad	9,218	1%	8%
Kolkata	6,362	2%	8%
MMR	19,677	1%	1%
NCR	7,434	1%	10%
Pune	7,681	3%	5%

Source: Liases Foras, Colliers

1 Note: All eight cities include Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, MMR, Pune

2 Note: All the prices are based on carpet area

Delhi-NCR saw the highest YoY change with a 10% surge in residential prices Over the period of two years prices in Delhi-NCR have been rising. Delhi NCR saw the highest increase in prices across Pan India at 10% with an average carpet price of INR 7,434/ sq feet in Q2 2022. Golf course road saw the highest price rise of 21%YoY followed by Noida Expressway. The entire region’s inventory dropped 10% YoY in Q2 2022, as developers focused on offloading older projects. While overall unsold inventory is the lowest in three years, the majority of the unsold inventory is concentrated in Noida extension and Greater Noida, followed by Ghaziabad.

Unsold inventory in MMR rose 14% YoY, while prices remained range-bound MMR, which accounts for the highest unsold inventory at 36% share, saw a 14% rise in unsold inventory in the last year. The rise in unsold inventory was led by significant new launches in the city. Housing prices largely remained range-bound, with a slight rise of 1% YoY. However, Western suburbs (beyond Dahisar) saw the highest increase in prices at 12% YoY. Unsold inventory in Central suburb extension accounts for 26%, majority share in the price range of INR 7,500-10,000 per sq ft. Bengaluru sees the steepest drop in unsold inventory at 21% YoY

Bengaluru witnessed a sharp decline in its unsold inventory during Q2 2022, dropping by 21% YoY. Inventory overhang in Bengaluru is continuously falling since the beginning of 2019 and is currently the lowest in the last three years. Almost the entire unsold inventory is in Bengaluru’s peripheral areas. This is owing to the large number of projects being launched in the peripheral areas of the city, due to promising prospects in these locations.

Media Contact: Sukanya Dasgupta Senior Director & Head, Marketing & Communications| Colliers India E: Sukanya.dasgupta@colliers.com M: 9811867682

Riddhi Vira Manager, Public Relations | Colliers India E: riddhi.vira@colliers.com M: 9619776362

About CREDAI The Confederation of Real Estate Developers' Associations of India (CREDAI) is the apex body of private Real Estate developers in India, established in 1999, with a vision of transforming the landscape of the Indian Real Estate industry and a mandate to pursue the cause of Housing and Habitat. Today, CREDAI represents 13000+ Developers across 221 city chapters in 21 states and plays an important role in policy formulation by representing the views of its members to various Ministries at regular intervals.

About Colliers Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.5 billion and $81 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at:

About Liases Foras Liases Foras, founded in 1998, is the only non brokerage real estate research company in India. Data and science form the core of its services, ranging from providing market intelligence and risk advisory to lenders and mortgage companies to providing development advice, best use, and valuations to developers, funds, banks, and corporations.

Liases Foras’s expertise lies in real estate pricing with a strong focus on understanding price dynamics and analyzing any underlying risks.

Liases Foras is well acknowledged as leading real estate research and analytics consultant. Their clients have been hugely benefited from the robust database on real estate markets in India. The database is built using data collected since 2003 and covers 60 cities across India.

Liases Foras has an organized and structured data source on real estate projects, developers & their trends in India, which is updated every quarter through a primary market survey.