Housing sales in top-7 cities have hit a new peak in 2022 despite the sustained hike in property prices and home loan interest rates in 2022, breaching the previous high of 2014, according to a study by Anarock. It added that about 364,900 units have been sold so far this calendar year against 236,500 units in 2021 across the top-7 cities, an increase of 54 per cent year-on-year (YoY).
According to the report, the last peak in housing sales was seen in 2014 when 343,000 units were sold in the national capital region (NCR), Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad, Chennai and Kolkata.
MMR had the highest sales of about 1,09,700 units in 2022, followed by NCR (63,700 units). These two realty hotspots are once again the leading residential markets, according to the report. Chennai and Kolkata had fewer sales than other cities. About 16,100 units were sold in Chennai and 21,200 units in Kolkata during the year.
Anuj Puri, chairman of Anarock Group, said, “The year 2022 has been a phenomenal one for residential real estate despite headwinds such as rising property prices, interest rate hikes and geopolitical tensions. Housing sales in top-7 cities breached the previous highs of 2014, while new launches in comparison were restricted.”
Puri added that while it was widely anticipated that the rise in property prices and interest rates towards the second half of 2022 would have a cascading impact on residential sales, Q4 of calendar 2022 remained quite robust, with as many as 92,160 units sold in the period.
He also said, “Interestingly, NCR was the shining star in 2022, as it deliberately restricted new supply in the year to about 22,350 units, while registering robust sales of 63,700 units.”
Puri said the current sales momentum is likely to continue in the first quarter of 2023. The appetite for home ownership has remained unsatiated, with most of the sales being driven by end-users. However, some risks loom around the residential segment. Much will depend on how home loan interest rates pan out over the next year.
After witnessing a complete standstill during the coronavirus-induced lockdown and a sharp slowdown thereafter, the real estate sector saw a rebound in sales this year. The year 2022 has been a positive year as the sector posted a strong recovery across segments — housing, office leasing, and retail, among others. Experts said the pent-up demand of the past two years and the strong need to own residential properties in the wake of the pandemic were the two major demand drivers behind the strong revival.
According to data shared by real estate portal Magicbricks, the overall real estate demand jumped 6.7 per cent year-on-year in the first quarter of the year 2022 (Q1). The second quarter (Q2) witnessed a surge of Rs 27.7 per cent, while the growth in the third quarter (Q3) was 2.9 per cent.
The supply was also up by 4.7 per cent y-o-y in the first quarter of 2022, 16.2 per cent in the second quarter, and 6.6 per cent in the third quarter ended September, according to the Magicbricks data.
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