According to new research, housing sales witness a 7% increase in the number of units sold in the first quarter of 2022 compared to the first quarter of 2021. Real estate consultants in Pune, Mumbai, had the largest proportion of housing sales, accounting for 56 percent of overall sales across the top eight cities.
According to the study, the Gurgaon-based company, part of REA India, owns Housing.com and Makaan.com, sold 70,623 apartments in Q12022, up from 66,176 units in Q1 2021, a 7 percent YoY increase.
In terms of new supply, the improvement was even greater, with a 50 percent increase in new launches YoY during the same time. According to the company, 79,532 units were introduced in Q1 2022, up from 53,037 units in Q1 2021.
Mumbai and Pune had the largest proportion of real estate property house sales in a quarter when demand for housing units priced between Rs 45 and Rs 75 lakh was at an all-time high, accounting for 56 percent of total sales.
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune are the markets included in the Real Insight quarterly report Residential – January-March 2022.
Pandemic Effects on Real Estate
India’s housing sector is resurfacing as a bright spot in the economy, assisting the country’s recovery from the pandemic’s effects. We expect more positive developments as activity returns to normal in the months ahead.
In a quarter when demand for housing units priced between Rs 45 and Rs 75 lakh was at an all-time high, Mumbai and Pune had the highest share of home revenues, which accounted for 56% of total sales, even though a recent joint consumer survey conducted by REA India and industry body NAREDCO found that 57 percent of potential homebuyers.
They would prefer to buy a ready-to-move-in (RTMI) property; under-construction properties accounted for 79 percent of sales in the quarter ended in March. It is owing to the price advantage this segment offers over ready-to-move-in properties.
In terms of new supply, the MMR market did the heavy lifting in the quarter ended March 31, with a 246 percent raise. Hyderabad experienced a 92 percent growth. Fresh releases were seen in Ahmedabad, Chennai, Delhi-NCR, and Kolkata in the March quarter.
Property prices are rising:
As predicted, home price growth intensified throughout the quarter, with average new property rates rising in every market studied. However, most of the increase in rates may be linked to building material prices.
According to the survey, the largest increase in property prices was seen in Chennai, where the average rate of houses has increased by 9% in the last year. Pune and Ahmedabad closely followed the southern market regarding price increases, with both regions seeing an 8% increase in average property rates. The rates in Delhi-NCR and Mumbai increased by 4%.
In the face of rising supply, housing inventory rises marginally:
Housing inventory increased somewhat, at a rate of 4% per year, as activity in the housing supply sector ramped up. As of March 31, 2022, builders in India have an unsold stock of 7,35,852 units.
By March 2021, this number had risen to 7,05,344 units. Again, Mumbai and Pune contribute the most to the national housing inventory, with individual shares of 35 percent and 16 percent, respectively.
However, inventory overhang has decreased to 42 months, down from 47 months a year earlier, due to stronger home demand. The inventory overhang in Delhi NCR is the largest, whereas Bengaluru and Kolkata have the lowest.
