Housing Demand at Peak in Seven Years in April-June 2022
According to a survey, the number of new real estate project launches in the top eight residential markets was at its highest level in seven years between April-June 2022 and increased by 368 percent year over year as well as 28 percent on a quarterly basis. In India’s eight key residential cities, 1.02 Lac units were launched in the second quarter as compared to 0.79 Lac in the previous quarter. House prices have also increased in wake of rising input costs, and central bank’s shift. The growing value of property ownership, which has been supported by consumer confidence in the economic environment, has been the largest driver of house demand.
Residential demand has increased throughout the top eight cities, with property sales showing favorable growth in the quarter ending April-June 2022. Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune are amongst the market included in the report. The research states that in Q2-2022, 0.74 Lac units were sold in the top eight cities, up from 0.70 Lac units in Q1-2022. The average price movement for new and available properties in the leading cities during this time ranged between 5 to 9 percent.
This report highlights that current unsold stock in the country is at 7.63 Lac units, will take approximately 34 months (2.8 years) at the current sales velocity to clear. Developers are returning to the market in full swing in the second quarter of the year. Looking at the overall encouraging trends, a sustained demand and increased strength in real estate market is seen especially amid the upcoming festive season which will push the growth trajectory further in upcoming quarter.