new delhi the housing demand in indiass top six cities mumbai metropolitan region mmr national capital region ncr bengaluru pune kolkata and hyderabad is expected to grow 510 percent dispite rising property prices interest rates and a highbase effect noted crisil in a reportcrisil estimates housing demand rose a solid 3338 last fiscal surpassing precovid19 levels but this was on a low base of fiscal 2021 when demand had fallen 2025affordability after improving upto 20 between fiscal 2016 and 2021 had started declining from the second half of fiscal 2022 the headwinds now are higher capital values and interest rates reinstatement of stamp duty and the highbase effect of fiscal 2021 crisil researchs proprietary mahtitm index2 indicates we expect residential real estate prices to rise 610 across the top six cities this fiscal due to a steep rise in material costs and relatively favourable demandsupply dynamics especially for established developerssome dvelopers have started hiking prices by 2 per quarter and may continue to do so over the next couple of fiscals to account for rising land prices however in spite of these headwinds housing demand is likely to grow 510 supported by favourable demographics and urbanization said said aniket dani director crisil research but why is housing demand not waning rbis move to increase the repo rate to 440 to curb the rising inflation has led to an increase in home loan rates by several financial institutions and banks this incline is less likely to have a significant impact on the home buyers sentiment as the home loan rates post increase will be in the range nearing 7 which is still attractive for the home buyers especially against the backdrop of price increase on account of rising input costs said kaushik desai of walton street blacksoil fundthe rate hike wont have significant impact as home loan interest rates have already gone down substantially in the recent past overall real estate sector now rests on a strong footing and buying decisions may not be altered by these marginal changes the rate hike will not impact luxury home buyers much as endusers of this segment are at the top of the pyramid unlike other housing categories where they might defer purchase decisions said lincoln bennet rodrigues chairman founder the bennet and bernard company known for luxury holiday homes in goainventory levels in majority of the top six cities are at a comfortable 24 years as against 355 years before the pandemic the correction happened because of fewer launches in the past two years owing to the pandemic and slower sales momentum although new launches are expected to catch up healthy demand will keep the inventory levels in check over the medium term this will be largely driven by established developers which will benefit from the sales momentum the shift in demand to organised players sound balance sheets and an assetlight approachthese realtors will continue to gain market share cornering 2425 of the spoils by march 2022 compared with 18 at the