Even though housing affordability in India has been impacted amid an increase in average values and interest rates, the growth momentum seen during 2022 is likely to continue in 2023, says a new report by property brokerage firm JLL India.
“Sales momentum is likely to sustain in 2023 on the expectations of moderating inflation supporting a reversal in repo rate hikes,” it said in a report released on January 5, 2023.
“Moreover, likely measures from stakeholders, such as longer loan tenures and attractive pricing deals, will keep buyers’ affordability levels within comfort,” it added.
“While affordability is likely to be dented, job stability and economic growth will continue to provide the necessary impetus to homebuying activity,” said Samantak Das, chief economist, and head, research & REIS, India, JLL.
Data available with the global brokerage company show a total of 215,666 homes were sold in 2022 as against 1,28,064 units in 2021 across India’s seven prime residential markets. This reflects a 68% annual increase in housing sales.   The sale recorded in 2022 is in fact the highest in over a decade ─ next to the peak seen in 2010 at 216,762 units.
“The high sales volumes in the second half of 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,” said Siva Krishnan, MD, and head, residential services, India, JLL.
“The momentum inhibitor looks to be a temporary one as India has a resilient domestic economy and robust macroeconomic fundamentals,” he adds.
Cities covered in the analysis include Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata and Pune. The analysis factors in only apartments to arrive at these numbers.
