• Approx. 3,64,900 units sold in 2022 against 2,36,500 units in 2021 across the top 7 cities, rising by 54% yearly; the last peak was seen in 2014 when 3.43 lakh units were sold
• MMR records the highest sales of approx. 1,09,700 units in 2022, followed by NCR with approx. 63,700 units
• Nearly 3,57,600 new units were launched in 2022 against 2,36,700 units in 2021, rising by 51% y-o-y; total new launches in 2022 remain lower than the previous peak of 2014 when >5.45 lakh units were launched in the top 7 cities
• MMR & Hyderabad witness maximum new launches in 2022, together accounting for nearly 54% of total new launches in the year
• 35% of total new supply was in the price bracket of INR 40 – 80 lakh, 28% in INR 80 lakh – INR 1.5 Cr budget & 17% in the ticket price of > INR 1.5 Cr
• NCR restricts new supply in 2022 to approx. 22,350 units despite robust housing sales of 63,700 units
• Available inventory decreased by a mere 1% in 2022 over 2021 due to robust new housing supply during the year
• Residential prices across the top 7 cities rise between 4-7% annually

Despite the gradual hike in property prices and home loan interest rates in 2022, it has been a fantastic year for residential real estate. Latest ANAROCK Research indicates that housing sales in the top 7 cities have created a new peak in 2022, breaching the previous high of 2014. Approx. 3,64,900 units were sold in 2022 against 2,36,500 units in 2021 across the top 7 cities – rising by 54% on Y-o-Y. The last peak was seen in 2014 when 3.43 lakh units were sold across the top 7 cities.

In terms of cities, MMR witnessed the highest sales of approx. 1,09,700 units in 2022, followed by NCR with approx. 63,700 units. The two realty hotspots are together once again the leading residential markets.

Meanwhile, new launches across the top 7 cities saw a 51% annual rise – from 2,36,700 units in 2021 to nearly 3,57,600 new units in 2022. MMR and Hyderabad witnessed maximum new launches in 2022, together comprising nearly 54% share of the total new launches in the year.

Anuj Puri, Chairman – of ANAROCK Group, says, “2022 has been a phenomenal year for residential real estate despite all headwinds including rising property prices, interest rate hikes and all geopolitical tensions etc. Housing sales in the top 7 cities breached the previous highs of 2014 while new launches in comparison remained restricted.”

“While it was widely anticipated that the rise in property costs and interest rates towards the second half of 2022 would have a cascading impact on the residential sales, Q4 2022 remained quite robust with as many as 92,160 units sold in the period,” says Puri. “Interestingly, NCR became the shining star in 2022 which deliberately restricted new supply in the year to approx. 22,350 units but witnessed robust housing sales of 63,700 units.”

“Further, as we march into a new year, we anticipate the current sales momentum in the housing sector to continue in the first quarter of 2023. The appetite for homeownership has remained undeterred, with maximum sales being driven by the end-users. However, various risks loom large around the residential segment. A lot will depend on how the home loan interest rates pan out over the next year.”

Puri goes on to state that in 2023, we may see new launches remain well under control across most top cities. Ready-to-move-in will continue to top buyer demand but the demand for new launches will also gain momentum. This is large because the new supply in the market is and will continue to be dominated by the large and listed developers in the new year. There is a sense of confidence among the buyers for these developers and hence they will continue to perform well and see significant sales, just as they did in 2022.

Housing Sales Overview City-wise

Residential sales stood at approx. 3,64,900 units in 2022 against 2,36,500 units in 2021 across the top 7 cities – rising yearly by 54%. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 90% of the sales in the quarter.

• MMR recorded the highest sales in 2022 across the top 7 cities. With nearly 1,09,800 units sold in 2022, the city witnessed an annual increase of 44%.
• NCR recorded sales of approx. 63,800 units in 2022, a significant increase of 59% over the last year.
• Pune recorded sales of around 57,200 units in 2022, an increase of 59% over 2021.
• Approx. 49,500 units were sold in Bengaluru in 2022, an annual increase of 50%.
• Hyderabad recorded sales of approx. 47,500 units in 2022, a massive yearly increase of 87% over 2021.
• Kolkata recorded sales of approx. 21,200 units in 2022, an annual increase of 62% from the previous year.
• Approx. 16,100 units were sold in Chennai in 2022, a yearly jump of 29% over 2021.

City-wise Absorption (In Units)
City	2022	2021	%Change (2021 Vs 2022)
NCR	63,712	40,053	59%
MMR	1,09,733	76,396	44%
Bengaluru	49,478	33,084	50%
Pune	57,146	35,975	59%
Hyderabad	47,487	25,406	87%
Chennai	16,097	12,525	29%
Kolkata	21,220	13,077	62%
Total	3,64,873	2,36,516	54%

Source: ANAROCK Research

New Launches Overview City-wise

The top 7 cities recorded new launches of around 3,57,600 units in 2022 as opposed to 2,36,700 units in 2021, an annual increase of 51% over the previous year. Key cities contributing to 2022 new unit launches included MMR, Hyderabad, Pune, and Bengaluru, altogether accounting for 86% of the total addition.

• MMR witnessed the highest number of new unit launches of 1,24,650 units in 2022 among the top 7 cities. Over 68% of the new supply was added in INR 40 Lakh to INR 2.5 Cr budget segment.
• Hyderabad added a new supply of approx. 68,000 units in 2022 compared to 51,500 units in 2021 – a healthy increase of 32%.
• Pune added approx. 64,300 units in 2022, a significant annual increase of 61% over the previous year. Over 74% of the new supply was added in the INR 40 Lakh – INR 1.5 Cr budget segment.
• Bengaluru added approx. 49,200 units in 2022, a yearly increase of 61%. Approx. 72% new supply was added in the INR 40 Lakh – INR 1.5 Cr budget segment.
• NCR’s new launches in 2022 recorded a decrease of 20% from the previous year with approx. 25,350 units launched this year.
• Chennai added approx. 10,000 units in 2022, an annual decrease of 19% over the previous year.
• Kolkata added approx. 16,100 units in 2022, an annual increase of 17% over 2021. Approx. 72% new supply was added in the sub-INR 80 Lakh budget segment.

Source: ANAROCK Research

Price Movements

On annual basis, prices have risen in the range of 4 – 7% primarily due to an increase in the input costs and demand comeback post-COVID.

Source: ANAROCK Research

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Investments are aimed at maximum returns and do yield those when chosen wisely. While there are numerous options available today, gold, equities, and residential real estate have withstood the test of time.

Gold remained a favourite investment for Indian households due to its liquidity and investment size flexibility. Equities are highly volatile and easily impacted by social, political, and economic upheavals. Real estate, always considered a long-term investment, gives portfolio stability, and appreciates with time. The physical nature of the asset, unlike stocks, also ensures limited wealth erosion.

As the COVID-19 pandemic beset the world towards the end of 2019, global stock markets buckled and crumbled under unprecedented business uncertainties. India, an integral part of the global economy, also saw rough times – the BSE Sensex declined sharply by 29% between December 2019 and March 2020.

Gold, considered a ‘safe haven’ investment in time of turbulence, went northward and appreciated by 4%. Residential real estate prices in India remained stable as there were uncertainties about the execution, development, and sales of the projects. All sectors, including real estate, were challenged on how to navigate the tempest.

The 2nd wave was more toxic in India, creating an acute healthcare crisis that claimed many lives and led to the re-enforcement of lockdowns. However, all asset classes stayed steady on the back of business continuity learnings from the 1st wave.

The stock markets exhibited resilience and investors again became active as many scrips were available at attractive valuations. During this period, the Sensex regained a growth trajectory after a minor correction of 1% in April 2021 compared to the previous month. Gold, though lower than the previous peak, appreciated again, while residential real estate remained stable.

The Sensex has recorded the highest appreciation in value and volume since the pandemic receded. The 3rd wave early this year caused a minor aberration and was short-lived. Gold continued regaining lost ground and would have remained in a stronger position had it not been for the global economic turmoil, geopolitical tensions, and supply chain issues.

Prashant Thakur, Sr. Director & Head – Research, ANAROCK Group, says, “In all this turmoil, residential real estate has exhibited exceptional resilience and is now on a growth path. The weighted average price across the top seven cities has appreciated. While price is a function of supply and demand, the favourable change of sales exceeding supply continued even during the pandemic. Analysis shows that the available housing inventory is on a steady decline.”

All assets have exceeded their pre-pandemic levels. Compared to the September 2019 levels, the BSE Sensex has recorded an appreciation of 52%, gold prices have increased by 34%, and residential real estate by 9%. These readings indicate that the worst impact of the pandemic is behind us. Economic growth, despite global uncertainties and the headwind of rising inflation, is likely to be robust.

“The COVID-19 pandemic reaffirmed the necessity of owning homes, since it provides more than mere accommodation – it also gives security in times of generalized financial instability,” says Prashant Thakur. “Gold and stocks, on the other hand, are volatile and subject to market risks.”

Currently, real estate activities are in full swing and both demand and supply are increasing rapidly. As residential launches increased by 76% and sales by 61% in H1 2022 compared to the pre-pandemic levels of H2 2019, housing is all set to witness further traction during the festive season, leading to further price appreciation.

About Post Author

The Business Daily

The Business Daily is North East India’s first Financial News Portal. This Pink Portal covers all big breaking news from the world of Business, Brands, Politics, Entertainments, Sports etc.

admin@thebusinessdaily.in

http://www.thebusinessdaily.in

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