Home sales in the top seven Indian cities rose to 215,000 units in 2022, the highest in over a decade, and a 68 per cent year-on-year (Y-o-Y) growth, global real estate services company JLL said in a report.
JILL's "Residential Market Update Q4 2022," said all four quarters saw sales of more than 50,000 units in Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune.
The report said that last year's sales spike was close to 216,762 units sold in 2010.
"The historic high sales numbers are significant, keeping in mind the rise in mortgage rates, property prices, and global headwinds during the year. Yet, despite all these challenges, consumer sentiments remained positive," the report said.
It added, "The market 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." Also, Delhi-NCR and Kolkata recorded the highest sales post-2014.
The high sales volumes in the first half of 2022 underline the strength of India's housing market and people's desire to own a home in the post-pandemic period.
JILL said the market is expected to sustain its growth momentum in 2023.
Commenting on the positive trends, Siva Krishnan, the managing director and head of residential services, India, JLL, said, "The momentum inhibitor looks to be a temporary one as India has a resilient domestic economy and robust macroeconomic fundamentals."
In the October-December quarter, sales rose by 16 per cent compared to the same period in 2021. However, it was down 5 percent sequentially as homebuyers delayed their decisions, taking a cautious approach due to global headwinds and uncertain economic conditions. Interestingly, the second half of 2022 accounted for 51 per cent share of the overall sales.
Saransh Trehan, managing director of Trehan Group, a real estate firm, said the recent hikes in home loan interest rates didn't impact housing demand.
He added, "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."
New Launches In 2022
A total of 247,000 units were launched in 2022, the highest in over a decade. The previous high was recorded in 2010 at 281,000 units.
The report noted that, encouraged by robust sales and strong economic fundamentals, developers launched projects across the top seven Indian cities.
Compared with the previous year, new launches in 2022 witnessed a growth of 81 per cent y-o-y. Most of the launches were in Mumbai (26 per cent), followed by Hyderabad (22 per cent). Bengaluru and Pune saw 20 per cent each.
More than 40 per cent of the launches were in the price bracket of 75 Lakh to 1.5 crore. The premium segment apartments were in the price range of above Rs 1.50 crore, accounting for a sizeable 21 per cent of the total share in the year.
