Mumbai remains the largest market by volume; NCR shows strong growth trends in both sales and supply.

The first quarter of the new year (January-March 2022) has seen quarterly sales attain a 4-year high of 78,627 residential units despite the third wave, according to the latest market assessment report by Knight Frank. Mumbai recorded the largest volume in sales at 21,548 units in Q1 2022, while Delhi-NCR recorded the highest year-on-year (YoY) growth in the sales volume of new homes at 123% YoY.

In the same period, new property launches were recorded at 78,171 units. The report also noted that, without exceptions, all the top markets saw a rise in the average capital values of residential properties as demand continued to strengthen. The report – ‘India Real Estate – Q1 2022’ — tracks developments in India’s top eight cities, including Mumbai, Bengaluru, Delhi – NCR, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad.

In the first quarter of 2022, 78,627 new homes were sold across the top eight cities which was higher by 9% YoY as against the same time last year. This far exceeded the pre-pandemic average quarterly sales volume for the third consecutive quarter signifying a sustained recovery in demand across the country.

Mumbai, which remained the largest market by volume, saw sales of 21,548 new units in Q1 2022, registering a -9% YoY decline. Delhi-NCR registered sales grew the most at 123% YoY to 15,019 new homes in first 3 months of the year, making it the second largest market by volume. Bengaluru, which was the third largest residential market by sales volume, also registered a YoY growth of 34% in Q1 2022, with sales of 13,663 new units between January and March 2022. Ahmedabad, albeit on a lower base, also grew at an impressive 34% YoY with sales of 4,105 units.

RESIDENTIAL SALES (IN UNITS) IN Q1 2022

Commenting on the same, Shishir Baijal, Chairman & Managing Director, Knight Frank India, 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 favorable environment for homebuyers who have rediscovered the need for new and better housing.”

“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.

New launches in the first quarter registered similar volumes to sales. With 78,171 new units added in Q1 2022, launches registered a growth of 3% YoY over same time last year. Yet again Mumbai recorded the largest volume of new units launched at 23,558 between January and March 2022. NCR with a substantial rise of 692% YoY recorded fresh launches of 12,880 units. The Kolkata market also registered a strong growth, encouraged by the 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.

Unsurprisingly, the maximum sales were in the sub-INR 5 Mn (INR 50 Lakh) category which made up 41% of all sales in Q1 2022. However, it is noteworthy that the higher category, that is INR 10 Mn (INR 1Cr) 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% YoY respectively during Q1 2022.

https://www.financialexpress.com/money/housing-sales-in-top-8-cities-at-a-4-year-high-in-q1-2022-report/2480875/