Residential real estate recorded one of its best performing years in 2022, with sales and supply both touching new highs, shows a new report by global property brokerage firm CBRE South Asia.
The report by CBRE South Asia, titled Indian Market Monitor-2022, shows over 295,000 homes were sold last year, showing 46% year-on-year growth. These all-time high sales numbers were driven by pent-up demand and expansionary market sentiments, says the report. Pune, Mumbai and Delhi-NCR together contributed 62% to the sales numbers.
Similarly, new supply in 2022 showed an annual increase of 50% ─ over 300,000 new units were launched through the year, showing a decadal high peak. Mumbai, Hyderabad and Pune together contributed 71% to the new launches.
On value appreciation, the report says that strong project pipeline amid healthy demand and low unsold inventory levels could lead to a rise in capital values in select pockets, although growth would be slower than that witnessed over the past year.
Property prices in most mega cities in India have moved upwards due a rise in input cost.
“Higher capital values could impact purchase decisions primarily in the budget to mid-end segments, amid the almost 2 percentage points rise in home loan rates in the past few quarters,” the report said. The RBI has increased the repo rate to 6.25% in 2022 from 4% in 2021.
Commenting on buyer preferences, the report says that projects with better amenities, focus on health and safety and clean surroundings will further gain an edge as consumer preferences evolve.
As the sector consolidates, India will see an increase in the number of listed players, it says.
“Listed players, specifically Tier-I developers, could continue to deleverage/strengthen their balance sheets through positive cash flow generation and fund-raising activity. More players are expected to list their companies on bourses,” the report adds.
