Housing sales jumped nearly 13 per cent quarter-on-quarter (q-o-q) to more than 70,000 units in Q1 2022 and sales rebounded significantly by approximately 40 per cent on a yearly basis in India, according to a Coldwell Banker Richard Ellis) South Asia Pvt. Ltd report.
The report, titled India Market Monitor – Q1 2022 highlights the growth, trends, and dynamics across various segments of the real estate sector in India.
“The residential sector is poised for a strong 2022, as both sales and new launches are set for a robust performance after exhibiting resilience the previous year. Continued policy push by the government (especially to the affordable and the mid-end segments), improved vaccination coverage, and revival in economic activity, coupled with attractive mortgage rates are likely to aid a strong performance by the residential sector,” says Anshuman Magazine, chairman and CEO-India, South-East Asia, Middle East & Africa, CBRE.
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The report further noted that the affordable/budget segment’s share of sales remained stable at 27 per cent in Q1 2022 compared to Q4 2021. While sales in the high-end segment jumped to 23 per cent in Q1 2022 as against 16 per cent in Q4 2022, those in the mid-end segment dropped to 41 per cent in this quarter. Interestingly, the premium and luxury housing segments also witnessed a slight uptick in sales on a q-o-q basis.
“New unit launches jumped by nearly 30 per cent year-on-year (y-o-y) to cross the 60,000-unit mark in Q1 2022, with shares of 43 per cent and 30 per cent in the mid-end and high-end categories dominatingd new launches in the country, respectively,” the report said.
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“While we believe that mid-end and affordable categories will continue to drive sales, premium and luxury categories have also witnessed renewed investor interest, fuelled by the anticipated appreciation in capital values and increased activity by high net-worth individual (HNIs) and non-resident Indians (NRIs),” says Gaurav Kumar, managing director, CBRE India.
The CBRE report further said that cities in the western part of the country continued to drive sales as well as unit launches. “Pune led housing sales in Q1 2022 with a 27 per cent share, followed by Delhi-NCR (21 per cent), Mumbai (20 per cent), and Bangalore (14 per cent). In terms of unit launches, Pune dominated among cities with a 29 per cent share, followed by Mumbai (22 per cent) and Hyderabad (20 per cent),” the report said.
The report also said that the growing popularity of hybrid work and sporadic homeschooling was driving the need for larger unit sizes and growing focus on plotted developments, as they offered flexibility in configuration and ancillary amenities.
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