Housing sales in India 7 prime residential real estate markets zoomed 69% year on year in the July-September period of 2022 (Q3CY22), shows a recent report by property brokerage giant JLL India.
The report titled, Residential Market Update Q322, also points out that sales during the first nine months of 2022 (Jan-Sep 2022) surpassed the annual sales post-2014, recording transaction for 161,000 units—- the annual sales in 2014 was at 165,791 units.
The uptick in sales is backed by robust consumer demand and quality launches by the developers.
“With the onset of the festive season, strong sales are expected in the upcoming quarter and as a result, annual sales in 2022 are expected to be more than 200,000 units. This will be the highest annual sales post-2010 when the sales stood at 216,762 units,” the report adds.
The annual increase in new launches was even more prominent, indicating 91% increase in new supply in Q3 when compared to the same period last year. A total of 62,825 new units were launched in the three-month period ended September 30, 2022, data show.
Backed by strong buyer demand, developers were quite active in launching apartments in both mid and premium segments. Around 54% of the launches were in the price bracket between Rs 50 lakh-1 crore. A sizeable proportion of new supply was also recorded in the price bracket of above 1 crore reflecting the buyers’ aspirations to upgrade to bigger and premium homes with better amenities,” shows the report.
Property prices during the quarter increased across cities, shows the report. Attributing the price rise to cost-push inflation and robust demand, the report states that average property values increased between 3 and 11% in these cities which included Bangalore, Chennai, Delhi-NCR, Kolkata, Mumbai, Hyderabad and Pune.
Hyderabad saw the maximum appreciation in prices at 11% on a yearly basis while in Pune prices increased by around 3%.
“The increase in the repo rate has resulted in an increase in mortgage rates. However, the interest rate after this hike would be still below what the homebuyers had to pay 8 to 9 years back,” it says.
As on September 30, 2022, unsold inventory across the seven cities stood at 397,537 after amid an increase in new supply. Mumbai, Bengaluru and Delhi-NCR together account for 63% of the unsold stock.
An assessment of years to sell shows that the expected time to liquidate the stock has declined from 3.6 years in Q2 2022 to 3.1 years in Q3 2022, an indication of robust sales growth.
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