Home truths: High loan rates and job losses threaten price growth

But if rate cuts begin and layoffs are limited, the housing market could repeat FY23 showing next fiscal

The residential real estate segment saw an average increase of 8 per cent in housing prices across the top seven cities over the past year, according to data from ANAROCK. However, the coming year may see a deceleration in the pace of price growth due to several headwinds.

Strong demand amid cost pressures

The price surge seen in the 2022-23 financial year (FY23) can be attributed to a multitude of factors. “Rising costs of inputs such as cement, steel, etc. — along with higher construction costs over the past fiscal year — compelled developers to increase prices,” says Anuj Puri, chairman, ANAROCK