Home price, sale trends in Bengaluru, Hyderabad, Pune, Mumbai, Chennai, Delhi-NCR: What to expect in 2022

Tremendous rise in homeownership aspirations in 2022 was supported by developer discounts and offers,

Home price, sale trends in Bengaluru, Hyderabad, Pune, Mumbai, Chennai, Delhi-NCR, Kolkata: Despite the devastating 2nd wave of COVID-19, Indian residential real estate staged a big comeback in 2021. In 2022, the launch and sale of residential housing units are expected to see satisfactory growth while the property prices may increase by 5-8% in the New Year, according to Anarock research.

Approximately 2.37 lakh housing units were launched across top 7 cities last year. New project launches increased by 85% in 2021 over 2020. Housing sales jumped 71% Y-o-Y in 2021 with approx. 2.37 lakh units sold, reaching 90% of pre-COVID 2019 levels. Mumbai Metropolitan Region recorded the highest sales at 76,400 units, followed by NCR with approximately 40,050 units sold, according to a report by Anarock.

The report says that of approximately 2.37 lakh units launched in 2021, the mid-segment (Rs 40 lakh to Rs 80 lakh) had the maximum share with 39%, followed by the affordable segment (priced under Rs 40 lakh) with a 26% share. The premium segment (priced between Rs 80 lakh to Rs 1.5 Crore) had a 25% share.

Housing sales in top 7 cities: 2021 vs 2020

In the top 7 cities, approx. 2,36,530 housing units were sold in 2021, against 1,38,350 units in 2020.

  • Mumbai Metropolitan Region saw maximum yearly sales of approx. 76,400 units among the top cities. City sales increased by 72% – from 44,320 units in 2020 to 76,400 units in 2021.
  • Hyderabad saw a huge 197% increase in sales, from 8,560 units in 2020 to 25,410 in 2021.
  • Delhi-NCR saw sales increase by 73% – from 23,210 units in 2020 to 40,050 units in 2021.
  • Pune witnessed a significant sales increase of 53% – from 23,460 units in 2020 to 35,980 units in 2021.
  • Bengaluru witnessed sales increase by 33% – from 24,910 units in 2020 to 33,080 units in 2021.
  • Chennai witnessed a hefty 86% increase in sales – from 6,740 units in 2020 to 12,530 units in 2021.
  • Kolkata witnessed 83% increase in sales – from 7,150 units in 2020 to 13,080 units in 2021.

New launches in top 7 cities: 2021 vs 2020

The top 7 cities witnessed the launch of approx. 2,36,700 new units in 2021, against 1,28,000 units in 2020.

  • Mumbai Metropolitan Region: Approx. 56,880 units launched in 2021, which is 88% more than 2020. Approximately 58% of the new supply was added in the sub-Rs 80 lakh budget segment.
  • Hyderabad added approx. 51,470 new units in 2021. The city witnessed yearly increase of 144% over 2020 and a 71% increase over pre-COVID 2019. Approx. 81% new supply was added in the mid-segment (Rs 40 lakh to Rs 80 lakh) and the premium segment (Rs 80 lakh to Rs 1.5 Crore budget range).
  • Delhi-NCR added 31,710 new units in 2021 compared to 18,530 units in 2020. Approx. 52% of the new supply was added in the mid and premium segments.
  • Pune added 39,870 units in 2021, which was 67% more than 2020. Approx. 57% of the new supply was added in the mid-segment.
  • Bengaluru added approx. 30,650 units in 2021, an increase of 43% over 2020. Approx. 72% of the new supply was added in the mid and premium segments.
  • Kolkata added approx. 13,750 units in 2021, a massive increase of 290% over 2020. Approx. 71% of the new supply was added in the affordable segment.
  • Chennai added approx. 12,370 units in 2021, an increase of 35% over 2020. Approx. 62% of the new supply was added in sub Rs 80 lakh budget segments

What to expect in 2022

According to Anuj Puri, Chairman – Anarock Group, 2021 was a fantastic year for the Indian housing sector. More or less an equal number of homes were launched and sold.

“The fact that launches were back to pre-COVID levels is very significant, and housing sales fell short of 2019 by a mere 10%. Of the four quarters, Q4 2021 was by far the best, with housing sales in the top 7 cities attaining a new high of approx. 90,860 units in Q4 2021. This was the highest quarterly sales performance since 2015,” Puri said.

Puri further said that the tremendous rise in homeownership aspirations was aptly supported by developer discounts and offers, government incentives like Maharashtra’s stamp duty cut, and lenders maintaining decadal-low interest rates.

According to Puri, very satisfactory growth in the residential housing sector will be seen in 2022. However, residential property prices may jump by 5-8% in the New Year due to input cost pressure and supply chain issues.

“Extrapolating on the performance in 2021, 2022 will see very satisfactory growth as long as the coronavirus pandemic remains in check in India,” said Puri.

“Various trends will shape the sector in 2022 – Grade A developers will corner more market share, and sales will come back to the pre-pandemic levels of 2019. However, input cost pressure and supply chain issues may induce a 5-8% increase in property prices. End-users will remain the dominant market force, and peripheral areas of the larger cities will continue to see both supply and demand traction,” he added.

https://www.financialexpress.com/money/home-price-sale-trends-bengaluru-hyderabad-pune-mumbai-chennai-delhi-ncr-2022/2397971/