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India Ratings and Research (Ind-Ra) has said it expects housing prices to appreciate by 8 per cent in current financial year (FY23), mainly due to rise in demand from end users. It mentioned that the current housing sales uptick and increased demand is end user driven and not speculative. Hence, the hike in prices will be sustainable and is likely to be incremental. Prices were up 6 per cent pan-India in FY22.

Furthermore, it added the surge in the housing sales in India has not been accompanied by a sharp rise in prices so far. It noted after a prolonged period of decline, prices stabilised in the past few years. It expects the price appreciation of residential property in FY23 to be around 8 per cent at pan-India level, led by Bengaluru, Mumbai, Pune and Hyderabad.

Besides, it expects housing sales to rise by around 12 per cent YoY (year-on-year) in FY23. In FY22, for the top eight real estate clusters, housing sales increased 42 per cent YoY on a pandemic-impacted lower base. In FY23, it expects well-known and trusted developers to witness better sales, and affordable housing segments to continue to claim around 50 per cent share of the total sales.