The NHB Residex, an index of housing prices across India recently showed that prices across 39 cities in the country have been showing signs of recovery. According to the index, home prices increased 8.5% in Kolkata, 5% in Hyderabad, 2.8% in Mumbai and 3.3% in Delhi during the March quarter as compared to the year-ago period.

In Maharashtra, the highest price increase was in Panvel (8.6%) followed by Thane (6.5%).

Our Take

Prices in the real estate sector are dependent on many factors, one of them being the price of raw materials. As per reports, the demand and price for metal has witnessed an increase while in the case of cement, prices continue to remain subdued despite a strong volume growth aided by growing infrastructure activities.

Along with reduction in bank lending rates, the introduction of RERA and GST have further strengthened investor confidence in the Indian real estate sector. Slowdown in new launches is resulting in more unsold inventory getting absorbed.