Home sales in India hit decade high of 2,15,000 units in 2022

It is almost like the 2010 sales of 216,762 units. Comparing the yearly numbers, the sales in 2022 increased by 68 per cent year-on-year with more than 50,000 units sold in each of the four quarters of 2022. The historic high sales numbers are significant keeping in mind the rise in mortgage rates, property prices, and global headwinds during the year

The residential sector witnessed a robust demand revival in 2022 with the year registering a decadal high in-home sale with 2,15,000 units across the top seven cities (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune) according to JLL's residential market update – Q4 2022.

It is almost like the 2010 sales of 216,762 units. Comparing the yearly numbers, the sales in 2022 increased by 68 per cent year-on-year with more than 50,000 units sold in each of the four quarters of 2022. The historic high sales numbers are significant keeping in mind the rise in mortgage rates, property prices, and global headwinds during the year. Despite all these challenges, consumer sentiments remained positive, and the residential market has set new benchmarks in 2022 after two Covid-impacted years. Bengaluru, Hyderabad, Mumbai, and Pune have achieved the highest sales post-2008 thus witnessing remarkable growth. Delhi NCR and Kolkata have recorded the highest sales post-2014.

Bengaluru and Mumbai jointly led the annual sales in 2022 as they clocked more than 46,000 units (22 per cent share each) followed by Delhi NCR at 38,000 units (18 per cent share). It is interesting to note that Kolkata, along with the two bigger markets of Mumbai, and Bengaluru witnessed the highest yearly growth in sales.

Quarterly sales numbers (October-December) improved by 16 per cent in Q4 as compared to the year-ago period. However, sequentially it was down by 5 per cent as there was a cautious approach and delayed decision-making observed in the last month of the year by prospective home buyers due to the global headwinds and uncertainty in the economic conditions. It is important to note that in the second half of the year (H2), sales accounted for 51 per cent share of the overall sales in 2022.

Talking to Bizz Buzz, Saransh Trehan, Managing Director, Trehan Group, says, "The good sign is that recent hikes in home loan interest rates have not impacted housing demand much. Interest rates are still in a comfort zone of sub 10 per cent per annum and therefore we think the momentum in the real estate sector is likely to continue in the new year."

As is the case with yearly sales, Bengaluru and Mumbai are jointly leading the quarterly sales with a 21 per cent share followed by Pune having an 18 per cent share. Interestingly Pune, Hyderabad, and Delhi NCR have exhibited increased sales volume in the second half of the year driven by quality launches in prime as well as emerging growth corridors.

Pradeep Aggarwal, Founder and Chairman, Signature Global, says, "Home buying scenario has changed significantly post Covid. Most families now understand the importance of owning a house and this is why we are witnessing strong demand in the housing sector, across segments."

However, the sector needs support from the government so that the demand remains intact even in 2023. Home buyers and developers both are hopeful and expect home buyers' friendly announcements in the upcoming budget, he said.

The robust sale witnessed in the residential market is seen across all price segments including the affordable, mid, and premium segment. Almost half of the sales witnessed in 2022 came from apartments in the price bracket of up to Rs 75 lakh. The sales momentum also remained strong in the premium segment as apartments in the Rs 1.5 crore plus price tag had a share of 19 per cent in the overall sales recorded in 2022. There is rising demand for bigger homes with good amenities and support infrastructure. It is interesting to note that the share of the affordable segment in annual sales in 2022 has declined as compared to the previous year. The share of apartments priced below Rs 50 lakh in total annual sales has declined from 28 per cent in 2021 to 22 per cent in the current year. On the other hand, the share of the premium segment (priced above Rs 1.5 crore) has seen an increase from 10 per cent to 19 per cent.

The affordability synergy that was prevailing six months back has been facing some challenges. There has been a rise in residential prices across the top seven cities of India in the range of 4-11 per cent Y-o-Y along with home loan interest rate that has moved up by around 200 bps in the last 7-8 months. The increase in prices is seen across the spectrum of projects that have high demand and less ready-to-move inventory. New phases of existing projects are also getting launched at higher prices.

Another 27,000 residential units in the plots and villa categories were sold in 2022 across the top seven cities. Most of the traction was seen in the southern cities of Bengaluru, Chennai, and Hyderabad.

Residential launches in 2022 at 247,000 units are the highest in over a decade and next to the previous high of 281,000 units in 2010. Encouraged by robust sales and strong economic fundamentals, developers launched residential projects across the top seven cities of India. Compared with the previous year, new launches in 2022 witnessed a growth of 81 per cent y-o-y. Most of the launches were witnessed in Mumbai (26 per cent) followed by Hyderabad (22 per cent). Bengaluru and Pune jointly had a share of 20 per cent. More than 40 per cent of the launches were in the price bracket between 75 lakh-1.5 crore. Premium segment apartments in the price bracket of above Rs 1.50 crore saw a sizeable 21 per cent share in the year.

Residential launches in 2022 at 247,000 units are the highest in over a decade and next to the previous high of 281,000 units in 2010. Encouraged by robust sales and strong economic fundamentals, developers launched residential projects across the top seven cities of India. Compared with the previous year, new launches in 2022 witnessed a growth of 81 per cent y-o-y. Most of the launches were witnessed in Mumbai (26 per cent) followed by Hyderabad (22 per cent). Bengaluru and Pune jointly had a share of 20 per cent. More than 40 per cent of the launches were in the price bracket between 75 Lakh-1.5 crore. Premium segment apartments in the price bracket of above Rs 1.50 crore saw a sizeable 21 per cent share in the year.