Residential sector grows 15% across top eight cities in Q3 2022: Report
NEW DELHI: Residential sector saw an annual growth of 15% in July-September 2022 2022 to 73,691 housing units across top eight cities in the country from 64,010 in Q3 2021, according to a recent report by Knight Frank India.
This is a 20% rise regarding the quarterly average sales observed during the pre-pandemic times of 2019. While the sales volumes remain robust, they have dipped by 8% compared to the preceding quarter.
Similar robust activity was observed in new launches growing 15% year-on-year (YoY) to 69,687 units in Q3 2022. All markets saw average prices increase in the range of 3% to 10% YoY during this period.
The residential market remained resilient in the eight residential markets of India with 2,32,396 home unit sales in 9M CY2022. This is a 40% increase from 1,63,426 residential volume sales in a stable repo rate environment of 9M CY2021.
Mumbai’s sales volume of 21,450 home units accounted for 29% of the total sales amongst the top 8 markets, highest among all markets. With 13,013 units sold in Q3 2022, Bengaluru also accounted for the second largest share of sales amongst the eight markets of the country. NCR had a similar strong performance with total sales of 11,014 units during the period.
In regards with Quarters to sell (QTS), the strong uptick in sales also brought the Quarters to sell (QTS) level down to 7.1 quarters from 10.3 quarters in Q3 2021.
|City||Q3 2021||Q3 2022||% Change (YoY)||Q3 2021||Q3 2022||% Change (YoY)|
With respect to ticket size split, what is interesting to note is that the sale of housing units in the Rs 1 crore and above category observed a substantial rise from 14,082 units in Q3 2021 to 20,633 units in Q3 2022. This resulted in the increase in share of sales to 28% in Q3 2022 compared to 22% a year ago. This can be attributed to the homebuyers’ need to upgrade to larger living spaces with better amenities.
The share of home sales in the Rs 50 lakh- Rs 1 crore category stayed steady with 26,529 units sold in Q3 2022. On the contrary, the share of units of Rs 50 lakh and below witnessed a decline from 43% (27,524 units) in Q3 2021 to 36% (26,529units) in Q3 2022.
Prices increased across all markets in the range of 3% – 10% YoY with some of the larger volume markets of Bengaluru (10%), NCR (8%) and Mumbai (6%) registering substantial growth. This also marks the third quarterly period of consistent YoY growth in prices across all markets.