Residential sales in top seven cities up 68% year-on-year in 2022: Report

January 9, 2023
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Residential sales in top seven cities up 68% year-on-year in 2022: Report

NEW DELHI: The residential sector witnessed a robust demand revival in 2022 with the year registering a decadal high in-home sale with 215,000 units across the top seven cities i.e. Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune, according to a recent report by JLL India.

The residential sales in 2022 increased by 68% year-on-year (y-o-y) with more than 50,000 units sold in each of the four quarters of 2022.

Bengaluru and Mumbai jointly led the annual sales in 2022 as they clocked more than 46,000 units (22% share each) followed by Delhi NCR at 38,000 units (18% share).

Quarterly sales numbers (October-December) improved by 16% in Q4 2022 as compared to Q4 2021. However, sequentially it was down by 5% 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.

“The high sales volumes in H2 2022 show that sales were still robust despite the recent challenges underlining the strength of the residential market in India and the increasing importance of home ownership post-pandemic. The Indian residential market is expected to sustain its growth momentum in 2023 while dealing with the challenges of global headwinds and higher interest rates,” said Siva Krishnan, managing director and head (Residential Services-India), JLL.

Bengaluru and Mumbai are jointly leading the quarterly sales with a 21% share followed by Pune having an 18% share.

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% in the overall sales recorded in 2022.

he share of apartments priced below Rs 50 lakh in total annual sales has declined from 28% in 2021 to 22% 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% to 19%.

There has been a rise in residential prices across the top seven cities of India in the range of 4-11% 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.

New launches in 2022 witnessed a growth of 81% y-o-y. Most of the launches were witnessed in Mumbai (26%) followed by Hyderabad (22%). Bengaluru and Pune jointly had a share of 20%. More than 40% of the launches were in the price bracket between Rs 75 lakh – Rs 1.5 crore. Premium segment apartments in the price bracket of above Rs 1.50 crore saw a sizeable 21% share in the year.

As of Q4 2022, unsold inventory across the seven cities increased by 1.8% on a quarter-on-quarter basis as new launches outpaced sales. Mumbai, Bengaluru, and Hyderabad together account for 63% of the unsold stock. An assessment of years-to-sell (YTS) shows that the expected time to liquidate the stock has declined from 3.1 years in Q3 2022 to 2.9 years in Q4 2022.

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