India's residential real estate sales have far outpaced 2021 levels with an annual growth of 50 per cent.
According to a new report by the country's leading online real estate brokerage company PropTiger.com, new presentations witnessed a strong growth during 2022 and recorded a year-on-year growth of 101 per cent with 4,31,510 new home presentations during calendar year 2022.
According to the Real Insight Residential – Annual Round-up 2022 (January – December) report, a total of 3,08,940 flats were sold in 2022 compared to 2,05,940 flats sold in 2021. The figures include sales for all four quarters of both calendar years for the top eight cities -- Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai and Thane) and Pune.
A total of 4,31,510 flats were introduced in 2022, a huge year-on-year growth of 101 percent over 2021. Mumbai remains the leader in terms of new registrations in 2022, accounting for 39 per cent of the total introductions. It was followed by Pune and Hyderabad with 18 per cent and 19 per cent respectively.
Mumbai, Pune lead property demand in 2022:
The data and information for 2022 shows that demand has increased both sequentially and annually in all four quarters of the year. With a combined share of 56 per cent in total sales in 2022, the western markets of Mumbai and Pune grabbed the attention of home buyers.
The largest share of sales (26 per cent) was in the INR 45 lakh to INR 75 lakh range. Notably, the share of flats priced above INR 1 crores is continuously increasing. The share of this price range was 22 percent in 2022, the highest in a decade. In 2022, 21 per cent of flats were sold in ready-to-move condition, while the remaining 79 percent were under construction.
Residential demand in the fourth quarter of 2022 was close to pre-pandemic levels in 2019. Demand registered a 19 percent increase over the fourth quarter of 2021, with 80,770 flats sold in the final quarter of 2022. Consumer sentiment remains positive even as the rise in property prices and interest rates is expected to have some short-term impact on homebuyer sentiment.
Homebuyer Sentiment Drives New Presentations:
A clear shift in consumer attitudes towards home ownership post-pandemic has boosted confidence among stakeholders and encouraged real estate developers in India's major cities to launch new projects in 2022.
The maximum new supply in 2022 was priced between Rs 1 crore and Rs 3 crore, which accounted for 28 percent of total presentations. Flats in the Rs 45 lakh to Rs 75 lakh price range also had a significant share (27 per cent). 1,45,030 flats were introduced in the fourth quarter of 2022, registering a year-on-year growth of 95 percent. For the third consecutive quarter in 2022, the number of new submissions exceeded 1,00,000.
“Despite the many challenges facing the industry, there has been a strong growth in home sales this year. It is worth noting that the industry is showing more demand and favorable sentiment. Despite the steady fluctuations in home loan interest rates, consumers are showing interest in purchasing a home at a lower cost rather than panicking about mortgage interest rates. This is also reflected in our consumer sentiment survey. The survey revealed that home buyers remain positive about the economy and their future earnings in 2022,” said Vikas Wadhawan.
"It is important to note that we have seen strong growth across all segments, including housing, office, retail, warehouse, data centers, co-working and co-living," Wadhawan added. In the post-RERA world, demand for Indian property by NRIs has also increased and secondary markets have also been boosted.
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