The first quarter of 2022 saw new home sales rise nine percent year-on-year to a four-year high of 78,627 across top eight cities despite the third wave, said a report by Knight Frank India.
This far exceeded the pre-pandemic average quarterly sales for the third quarter signifying a sustained recovery across the country.
Mumbai, which remained the largest market by volume, saw sales of 21,548, registering a 9% YoY decline. Delhi – NCR grew the most at 123% YoY to 15,019 new homes, making it the second largest market by volume.
Bengaluru, which was the third largest residential market by volume, registered a YoY growth of 34% at 13,663 new units. Ahmedabad, although on a lower base, grew an impressive 34% YoY to 4,105 units.
New launches in the first quarter registered volumes similar to sales. With 78,171 new units added, launches registered a growth of 3% YoY over the same time last year.
Yet again Mumbai recorded the largest volume of new units launched at 23,558. NCR, with a substantial rise of 692% YoY, recorded fresh launches of 12,880 units, the report said.
Kolkata also registered strong growth, encouraged by sales volumes that the market has been attracting, to note a rise of 141% YoY in new units launched. Mumbai (-24%) and Pune (- 49%) were the only two markets that registered a YoY decline in number of launches.
Most sales were in the sub-Rs 50 lakh category which made up 41% of all sales. However, it is noteworthy that the higher category of Rs 1 crore and above actually saw an increase in its share of sales in this quarter. This category made up 25% of all sales in Q1 2022 as compared to 18% in Q1 2021.
All cities posted a YoY growth in per square foot (sq ft) prices during Q1 2022. Prices grew the most in Bengaluru at 7% YoY followed by Pune and Mumbai at 5% and 4% respectively during Q1 2022, the report said.
“The growth in the residential market has been impressive for the key markets of India over the last few quarters, as a result of a strengthening economy as well as individual financial confidence. Low interest rates, best affordability levels, healthy wage growth and the waning pandemic with lower risk of further disruptions have created a favourable environment for homebuyers who have rediscovered the need for new and better housing,” said Shishir Baijal, chairman and managing director, Knight Frank India.
“While financial stress remains a significant factor for developers across markets, healthy and sustained homebuyer activity should pave the way for gradual price increases and enable them to tide over the rise in costs of critical inputs like cement and steel,” he added.
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