The strong home buying sentiment kept the momentum of residential sale going in 2022. The recent report states that the continuous demand for homes marked sale of 215,000 residential units last year. Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune recorded highest number of residential units sale.
With the sale of over 50,000 housing units in each quarter of 2022, the residential sale escalated by 68% Year-on-Year ratio as per the recent report by JLL India.
The sale of more than 46,000 housing units made Mumbai and Bengaluru secure the top position in the sales chart with a share of 22%. These cities were followed by Delhi-NCR as the sale of 38,000 residential properties, marked it to 18% share. The capital city shared third position with Pune, who also recorded 18% residential sales.
Q4 2022 was said to be a better performer than Q4 2021. Although, this quarter was a bit slow as homebuyers took time to make a final home-buying decision. The homebuyers’ watch-the-step approach due to the overall economic scenario gave a blow to housing sale in the year.
Siva Krishnan, Managing Director and Head (Residential Services – JLL India) said, “The high sales volume in H2 2022 show that sales were still robust despite the recent challenges underlining the strength of the residential market in India and the increasing importance of home ownership post-pandemic. The Indian residential market is expected to sustain its growth momentum in 2023 while dealing with the challenges of global headwinds and higher interest rates.”
In 2022, more than 50% of sales came in from the sale of apartments under Rs. 75 lakhs. Interestingly, the sales momentum kept going as the premium segment properties (Rs. 1.5 Crore+) recorded sales of 19% in the said year.
The increase of 200 basic selling points in the home loan interest rate didn’t stop the impetus of residential sales in the top 7 Indian cities. As the sale was recorded between 4-11 % Year-on-Year basis. However, despite an increase in property prices across segments, India witnessed massive demand for properties and a limited inventory of ready-to-move-in homes.
In the top 7 cities, the unsold inventory marked an increase of 1.8%, as new projects took over the previous inventory options. Mumbai, Bengaluru, and Hyderabad collectively hold 68% of unsold inventory. However, the evaluation of years to sell (YTS) shows a decline in time to liquidate unsold stock from 3.1 years in Q3 2022 to 2.9 years in Q4 2022.
On a Year-on-Year basis, the new project launches recorded 81% growth. The maximum projects are in Mumbai (26%) and Hyderabad (22%). Over 40% of launches took place in the price bracket between Rs. 75 Lakhs and Rs. 1.5 Crore.
