New launches of real estate projects in top eight residential markets in April-June 2022 was highest in seven years and registered 28% Q-o-Q and 368% Y-o-Y increase, according to a report by Australia headquartered REA backed PropTiger.
1,02,130 units were launched in the second quarter as against 79,530 in the preceding quarter across India’s eight prime residential markets.
The report also said that housing prices register an uptick in the backdrop of rise in input costs, geopolitical issues and reversal of the accommodative stance by the central bank.
“The biggest booster to housing demand has been the increased importance of owning a property which has been further backed by the consumer confidence in the overall economic scenario and impending income stability,” said Vikas Wadhawan, Group CFO, PropTiger.
As economic stability provides homebuyers with more confidence in their financial state, residential demand has picked up across the top eight cities, with both housing sales and new supply registering positive growth trend in the quarter ending April-June 2022 (Q2 CY2022).
The markets covered in the report include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune.
According to the report, housing sales during the quarter ending June 30th, registered a sequential 5% uptick when compared to the previous quarter (Q1 CY2022). According to the report 74,330 units were sold across the top eight in Q22022 as compared to 70,620 units sold in Q12022. The sharpest sequential increase in sales was witnessed in end-user driven markets of Ahmedabad at 30% and Hyderabad, at 21%, respectively.
Average values of new and available properties in the top cities registered an upward price movement ranging between 5% to 9% in this period.
The report highlights the current unsold stock in the country is at 7,63,650 units during this period, which will take approximately 34 months (2.8 years) to at the current sales velocity of the top eight cities.
“We see developers returning to the market in full swing in the second quarter of the year, thus catapulting the new supply back to the 2015 levels. Looking at the overall encouraging trends, we anticipate the sustained demand momentum to increase strength to strength especially amid the upcoming festive season which will push the growth trajectory further in ensuing quarter,” said Ankita Sood, Head of Research, PropTiger.
Source : ET