Residential Market Update: Q2 2022

The residential market recorded sales of over 53,000 units in Q2 2022 which is an increase of 171% as compared to Q2 2021 across the top 7 cities. This demonstrates the rising demand due to containment of the pandemic and buyer confidence coming back to the market. On a sequential basis, sales increased by 3% during the quarter with the rise in residential prices due to rising input costs and interest rates causing growth to be almost in Q2 2022. However, sales in Q2 2022 are more than the average quarterly sales recorded in 2019 which demonstrates the innate growth potential of the sector.

New launches of more than 63,000 units were recorded in Q2 2022, an increase of 6% q-o-q and 135% y-o-y. Mumbai dominated with a 27% share of the new launches followed by Hyderabad and Pune which contributed 25% and 21%, respectively. Launches in in Q2 2022 were higher on a q-o-q basis in Delhi NCR, Hyderabad, Mumbai, and Pune. A declining trend was visible in Bengaluru, Chennai and Kolkata.

Bigger ticket size apartments priced over INR 1.5 crore record surge in sales

Residential sales in Q2 2022 in the INR 1.5 crore plus price tag increased by over 270% y-o-y. The increased residential sales in the premium category indicate rising demand for bigger homes along with buyer confidence returning.

Strong recovery in sales in H1 2022 over H1 2021

India’s residential market has shown remarkable resilience in the last year. Sales of more than 105,000 units were recorded in H1 2022 which is an increase of 119% y-o-y as compared to H1 2021. This certainly indicates that the market sentiments are improving compared to the previous year.

Launches of premium apartments hold steady

Backed by strong buyer demand, developers were quite active in launching apartments in the over 1 crore category in Q2 2022, a trend witnessed in previous quarter also. This category contributed towards 41% of the new launches in the quarter.

Mumbai, Bengaluru and Delhi NCR account for nearly 63% of sales

Mumbai contributed 23% of the sales activity during the quarter, followed by Bengaluru with 21% and Delhi NCR accounting for 19%, while Pune sales numbers represented 16% of overall sales.

Mumbai, Hyderabad and Pune account for 73% of the new launches

In Q2 2022, Mumbai dominated with a 27% share in the new launches followed by Hyderabad and Pune with shares of 25% and 21%, respectively.

Prices moving northwards

The increase in input costs and the strong demand has caused an appreciation in residential prices with capital values showing a 3-7% y-o-y increase across all cities except Hyderabad which clocked a double-digit price growth over the same period