A record four-year high of 78,627 residential real estate units were sold in the January-March 2022 quarter despite a third wave; units priced above Rs 1 crore made up quarter of sales, says report
A record number of 78,627 residential units, the highest in four years on a quarterly average, were sold in the January-March quarter of 2022, despite a third wave of the coronavirus hitting the country. This was 9 per cent higher than the corresponding quarter of the previous year.
Also, a quarter of the units sold were in the price bracket of Rs 1 crore and above, though the maximum sales were in the below Rs 50 lakh category which made up 41 per cent of all sales in Q1 2022. The findings appear in the India Real Estate – Q1 2022 report prepared by residential and commercial property consultant, Knight Frank. The report tracks the development of the real estate sector in India’s top-eight cities.
“It is noteworthy that the higher category, that is Rs 1 crore and above, actually saw an increase in its share of sales in this quarter. This category made up 25 per cent of all sales in Q1 2022 as compared to 18 per cent in Q1 2021,” the report said.
According to the report, Mumbai recorded the largest volumes in terms of sales at 21,548 units, but registered a decline of 9 per cent on a yearly basis, while the Delhi – NCR territory recorded sales of 15,019 units, a growth at 123 per cent on a yearly basis.
“This far exceeded the pre-pandemic average quarterly sales volume for the third consecutive quarter, signifying a sustained recovery in demand across the country,” the report added.
“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,” says Shishir Baijal, chairman and managing director, Knight Frank India.
The same period also saw the launch of 78,171 new units, the report said. Without exceptions, all the top markets saw a rise in the average capital values of residential properties as demand continued to strengthen.
According to the report, Bengaluru, which was the third-largest residential market by sales volume, registered a yearly growth of 34 per cent 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 per cent on a yearly basis with sales of 4,105 units.
Baijal further noted that while financial stress remained 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.
Incidentally, new launches in the first quarter of 2022 also registered volumes similar to sales. A total of 78,171 new units were added in Q1 2022, a growth of 3 per cent annually over the same period last year. Mumbai recorded the largest volume in terms of new units launched at 23,558 between January and March 2022. The Delhi-NCR territory, with a substantial rise of 692 per cent year-on-year, recorded fresh launches of 12,880 units.
Kolkata, too, registered a strong growth, and saw a rise of 141 per cent annually in terms of units launched. Mumbai and Pune, however, saw respective declines of 24 per cent and 49 per cent, on a yearly basis in terms of the number of new launches.