Despite Covid-19 headwinds in the form of lower consumer sentiments, market uncertainty, etc, India’s residential real estate sector registered record sales during the third quarter of FY2022 – strongest since FY2007.

Despite market uncertainty and Covid-induced restrictions, India witnessed a 17 per cent increase on year-on-year basis in residential real estate sales during the third quarter of FY 2022. The sales numbers show a dramatic bounce-back across regions after the second Covid wave that had impacted consumer sentiments. According to Kotak Institutional Equities’ residential real estate report, India witnessed sale of 194.7 million sqft during the period as against 165.8 million sqft the same period last year. This is the strongest quarter sales number since FY2007, and the previous best was 174 million sqft reported in 4QFY11.

The biggest momentum pullers

In terms of cities, Hyderabad showed the strongest sales momentum with 35 per cent yoy increase, followed by Bengaluru with 20 per cent yoy rise, and NCR growing at 16 per cent yoy even as Mumbai’s sales rose by 8 per cent you, registering a weaker performance in 2QFY22, the report said. In terms of launch activity, India registered a modest dip in 3QFY22 at 114.9 million sqft as against 126.3 million sqft witnessed in 2QFY22. With such sales, India’s outstanding inventory has also reduced thereby increasing the average prices across the country by 7 per cent yoy to Rs 6,303 per sqft in 3QFY22. Here are the city wise figures in terms of sales in major metro cities:

• The sales activity in the National Capital region accelerated in 3QFY22 at 15.9 million sqft (+40 per cent yoy, +39 per cent qoq) from 11.4 million sqft in 2QFY22. The sales-mix was dominated by Gurugram (43 per cent) with Noida contributing to 20 per cent of sales and the share of Greater Noida at 17 per cent in 3QFY22. Launches in NCR also remained buoyant at 6.8 million sq. ft of new projects launched in 3QFY22. Gurugram contributed 53 per cent while Noida contributed another 24 per cent of new launches during the quarter.
• Mumbai Metropolitan Region (MMR) saw increased sales momentum in 3QFY22 with sales reaching 35.3 million sqft (24.9 per cent sqft in 2QFY22). Thane continued to maintain a higher share in overall sales in MMR at 48 per cent while Mumbai and Navi Mumbai contributed 37 per cent and 15 per cent of the sales in 3QFY22. Launches in MMR jumped 18 per cent sequentially to 22.1 million sqft in 3QFY22 with Thane and Mumbai contributing 52 per cent and 38 per cent of the launches in 3QFY22.
• Bengaluru saw sales of 21.6 million sqft (+35 per cent yoy, +40 per cent qoq) against launches of 6.9 million sqft (-31 per cent yoy, -41 per cent qoq) in 3QFY22. Launch activity in Bengaluru dipped in December 2021 to 2.3 million sqft after having remained weak over the past one year and declined by 20 per cent yoy to 35.3 million sqft in TTM. Weakening launches, on the back of strong sales momentum, has led to a decline in outstanding inventory to 122 million sq. Ft (-19 per cent yoy) by December 2021.
• Hyderabad saw sales of 24 million sqft against launches of 24.2 million sqft in 3QFY22. Outstanding inventory increased to 121 million sqft (+16 per cent yoy) in December 2021 and is equivalent to ~1.5 years of sales. Realizations increased by 15 per cent yoy to Rs 6,486 per sqft.

“Our coverage universe saw strong growth of 52 per cent yoy in sales at Rs 145 billion in 3QFY22 leading to market share of 11.8 per cent on an all-India basis (sales of Rs 1.2 tn, +26 per cent yoy). Across the top three metros, the market share for coverage universe is higher at 18.7 per cent in 3QFY22. We note that sales of Rs 145 billion in 3QFY22 are twice that of average quarterly sales Rs 78 billion in FY2021 (annual sales of Rs 314 billion),” said Murtuza Arsiwalla, Director, Kotak Institutional Equities.

In terms of individual performance, Prestige led the race with sales of Rs 43 billion followed by Oberoi Realty with Rs 20 billion, DLF with Rs 20 billion and Lodha with sales of Rs 26 billion. Players like Brigade and Godrej Properties saw weak performance with the absence of new launches due to a ‘delay in approvals’.

https://www.financialexpress.com/industry/real-estate-sales-soar-india-residential-property-sales-in-q3fy22-highest-since-2007/2444901/