Housing sales witnessed a four-year high of 78,627 at the beginning of 2022 despite the third wave hitting the market. Out of all 8 cities that gauged for sales, Mumbai stood highest with record sales of 21,548 in the first quarter, and Delhi witnessed good growth in the sales volume up to 123% compared to previous years.
In parallel to the huge demand for residential properties across major cities of India, the new launches in India accumulated to a good number of 78000. According to recent reports, all the top markets witnessed a rise in the capital values of the property in their respective location.
All these instances do have an impact on housing prices. The residential properties across different locations registered an uptick in the sale prices due to different factors like input costs, accommodative stances and geopolitical issues. In spite uptick in the registered property values, the demand for the property purchase continues to strengthen in the respective locations.
“The biggest booster to housing demand has been the increased importance of owning a property which has been further backed by the consumer confidence in the overall economic scenario and impending income stability.”
The economic stability in the country gives the users more confidence in their financial state, and there has been a great rise in the home sales and new launches with respect to the first quarter of the year. The end user-driven markets like Hyderabad and Ahmedabad witnessed a rise of 30% and 21%, respectively. There has been a rise average price value of the property by 5% to 9% during the period.
The current unsold property across the country is approximate 7 to 8 lakhs which takes 2.8 years to be sold out at the current sales velocity across the top 8 cities of the country. The report assessed tracking the developments in the top eight cities of the country Hyderabad, Chennai, Mumbai, Delhi, Bangalore and Kolkata. The sale exceeded far beyond pre-pandemic times average quarterly sales volume signifying a sustainable recovery in demand for real estate property sales.
Source: Knight Frank Research
“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 & Managing Director, Knight Frank India.
The developers have been facing continuous financial stress from the pandemic times. Raise in demand to purchase residential properties paves the way for a gradual rise in the property value, enabling them to tide with input costs of the construction.
All cities witnessed year-to-year growth in the price for square feet during the first quarter of the year the cities like Bengaluru, Pune and Mumbai at 7%, 5% and 4%, respectively.
“We see developers returning to the market in full swing in the second quarter of the year, thus catapulting the new supply back to the 2015 levels. Looking at the overall encouraging trends, we anticipate the sustained demand momentum to increase strength to strength, especially amid the upcoming festive season, which will push the growth trajectory further in the ensuing quarter."
