New Delhi : This is a sign of significant recovery in Indian real estate sector, and for the first time in the last decade, home sales are over 73% of new launches across top 9 regions in India indicating a strong, organized effort from developers to clear already launched units and deliver projects on time before launching new projects.
In a report released by PropEquity, India’s leading real estate data, research and analytics firm, home sales in India’s top regions had new launches in the Q4 2022 at 69,349 units, a fall of whopping 30% from Q4 2021 at 98,735 units. The top 9 regions saw home sales in Q4 2022 at 1,20,275 units vs 1,09,464 units in Q4 2021.
Sales saw a maximum jump in Hyderabad at 24% followed by Navi Mumbai at 23% and Mumbai at 22% on a Y-o-Y basis. Only two regions witnessed a fall in Q4, Delhi NCR at 7% and Chennai at 2%. Overall, home sales saw an increase of 10% in the Q4 2022 (October-December 2022) compared to the same period last year.
Real estate sector in India has been showing signs of resilience even with inflationary trends, higher home loan borrowing costs and overall weak global economic climate due to effects of COVID-19 and ongoing Geo-political crisis.
“Despite the many challenges facing the industry, home sales strongly recovered this year. It is worth noting that the demand in the industry and the positive sentiment is growing. Even with the steady rise in mortgage rates, customers were still taking loans in anticipation of appreciation of properties and as end users for the units. India is witnessing strong undercurrents in terms of economic recovery and the real estate sector has done better than expectations. The year has ended with a high sales in residential real estate, with recorded sales in Q4 CY ’22 being highest in the last recent quarters with limited new launches in Tier-1 cities.” Mr. Samir Jasuja, Founder and Managing Director at PropEquity said.
“The sales across India witnessed a massive jump in Q4 and 2022 as market sentiment for home purchases have improved massively. Many customers who were sitting on the fence are now back in the market finally closing the deals as evident from the ongoing blockbuster sales by India’s well known developers. Going ahead, we are going to see more new launches as older inventory is getting off the shelf sooner than expected,” Mr. Shiwang Suraj, Founder & Director at INFRAMANTRA said.
Home sales in Q4 across Pune, Thane, Hyderabad, Bengaluru, Mumbai, Navi Mumbai, and Kolkata saw an increase of 3%, 16%, 24%, 2%, 22%, 23% and 1% respectively on a Y-o-Y basis. Delhi NCR and Chennai witnessed a fall of 7% and 2% respectively.