Research

Residential Market Update: Q4 2022

Yearly residential sales hit a decade high with 215,000 units recorded in 2022

February 01, 2023
Contributors:
  • Samantak Das
  • Rohan Sharma
Residential Market Update: Q4 2022

Yearly residential sales hit a decade high with 215,000 units recorded in 2022

The residential sector witnessed a robust demand revival in 2022 with the year registering a decadal high home sales numbers with 215,000 units across the top seven cities (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune). It is almost similar to the 2010 sales of 216,762 units. Comparing the yearly numbers, the sales in 2022 increased by 68% y-o-y with more than 50,000 units sold in each of the four quarters of 2022. The historic high sales numbers are significant keeping in mind the rise in mortgage rates, property prices, and global headwinds during the year. Despite all these challenges, consumer sentiments remained positive, and the residential market has set new benchmarks in 2022 after two COVID-impacted years.

Residential launches in 2022 at 247,000 units were the highest in over a decade and next to the previous high of 281,000 units in 2010. Encouraged by robust sales and strong economic fundamentals, developers launched residential projects across the top seven cities of India. Compared with the previous year, new launches in 2022 witnessed a growth of 81% y-o-y.

Trends in the residential segment in Q4 2022
Sales down by 5% on a q-o-q basis

Quarterly sales numbers improved by 16% in Q4 2022 as compared to Q4 2021. However, sequentially it was down by 5% as there was a cautious approach and delayed decision-making observed in the last month of the year by prospective home buyers due to the global headwinds and uncertainty in the economic conditions. In the second half of the year (H2 2022), sales accounted for 51% share of the overall sales in 2022.

New Launches on a surge

With the festive season in Q4 2022, developers continued to launch residential projects to tap into the growing demand by home buyers. The top 7 cities under consideration witnessed new launches of 62,961 apartment units in Q4 2022.

Residential launches active in the mid as well as premium segment

Backed by strong buyer demand, developers were quite active in launching apartments in both mid and premium segments. Around 43% of the launches were in the price bracket between INR 50 lakh-1 crore. Nearly half of the new supply (47%) was also recorded in the price bracket of above 1 crore reflecting the buyers’ aspirations to upgrade to bigger and premium homes with better amenities.

Bengaluru, Mumbai & Delhi NCR contributed more than 60% of sales in 2022

Bengaluru and Mumbai jointly led the annual sales in 2022 as they clocked more than 46,000 units (22% share each) followed by Delhi NCR at 38,000 units (18% share). It is interesting to note that Kolkata, along with the two bigger markets of Mumbai, and Bengaluru witnessed the highest yearly growth in sales. In the second half of the year (H2 2022), sales accounted for 51% share of the overall sales in 2022. The high sales volumes in H2 2022 show that sales were still robust despite the recent challenges underlining the strength of the residential market in India and the increasing importance of home ownership post-pandemic.

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