Housing sales in top 7 cities to reach decade’s highest of 215,000 units in 2022: JLL

As per the report, sales in the said cities are expected to grow by 68% year-on-year in 2022, with each of the four quarters of 2022 selling over 50,000 units. The higher sales numbers are significant given the rise in mortgage rates, property prices, and global headwinds during the year.

Bengaluru, Hyderabad, Mumbai and Pune achieved the highest sales since 2008, while Delhi NCR and Kolkata registered the highest sales since 2014.

“The quarterly sales numbers (Oct-Dec) improved by 16% in Q4 2022 as compared to Q4 2021. However, it was down 5% sequentially as the last month of the year took a cautious approach and delayed decisions. by potential home buyers due to global headwinds and uncertainty in economic conditions. It is important to note that in the second half of the year (H2 2022), sales accounted for 51% of total sales in 2022,” JLL said.

“The higher sales volume in the second half of 2022 shows that sales were still strong despite the recent challenges underlining the strength of the residential market in India and the growing importance of home ownership after the pandemic. The Indian residential market is expected to maintain its growth momentum in 2023 while weathering the challenges of global headwinds and high interest rates.”

Bengaluru and Mumbai led the quarterly sales with a combined 21% share, followed by Pune with 18% share. Interestingly, Pune, Hyderabad and Delhi-NCR exhibited growth in sales volumes in the second half of the year, driven by quality launches in prime as well as emerging growth corridors.

Residential sales remained strong across all price segments including affordable, mid and premium segments. Apartment price accounts for almost half of the sales seen in 2022 75 lakhs.

Premium segment with pricey units 1.5 crore and above, accounted for 19% of the total sales recorded in 2022.

part of the lower priced apartments 50 lakh total annual sales to decline from 28% in 2021 to 22% in 2022. On the other hand, the share of premium properties increased from 10% to 19%.

However, the strength synergy that existed six months ago is facing some challenges. Housing prices have increased in the range of 4-11% in the top seven cities of India over a year ago, along with an increase in home loan interest rate of about 200 bps in the last 7-8 months. The rise in prices is seen across the spectrum of projects that have high demand and low ready-to-move inventory. New phases of existing projects are also starting at higher prices.

“While affordability is likely to ease, job stability and economic growth will continue to provide the necessary momentum to home buying activity. Also, it is expected that measures will be taken by various stakeholders to deal with the inflationary pressures. As developers are taking cognizance of the preferences of the buyers and focussing on developing or launching projects that are more relevant and aligned with the needs of the evolving customers, the growth witnessed in the last year from the residential market The momentum is expected to carry forward,” said Samantak Das, Chief Economist and Head Research & REIS, India, JLL.

Residential launches in 2022, at 247,000 units, were up 81% on the year, and were the highest in a decade and next to the previous high of 281,000 units in 2010. Encouraged by strong sales and strong economic fundamentals, developers launched residential projects across the top seven cities of India.

“India’s residential market has been on a phenomenal growth trajectory in 2022 with affordable synergies and rising importance of home ownership. We have now entered a zone of rising interest rates and global headwinds. As a result, affordability is likely to be further impacted in 2023. Pricing pressures and middle-income growth are likely to create a temporary dent to affordability, though it should remain attractive and second only to the highest affordability levels seen in 2021. JLL said.