Residential sales have continued to show robust growth while registering sales of 83,220 units, a 49% YoY growth between July-September 2022 as compared to 55,910 units sold in the corresponding period last year, according to a report by REA India-owned online real estate platform PropTiger.com.
With the festive season in full swing, India’s real estate developers are hopeful about the sector receiving a boost towards recovery.
New supply registered a YoY growth of 61 percent when compared to Q3 2021 (July – September). The report also stated that the new supply is at par with the 2015 levels for the second consecutive quarter.
“The real estate industry is bouncing back from the pandemic and subsequent disruptions, and it’s evident from the data trends and insights in our report. Especially with the festive season which has just commenced, we’re experiencing a continuous surge in consumers’ positive sentiments towards property investments. Q3 this year has seen a significant improvement in the demand for housing and this will set the ball rolling for the next quarter as well,” said Vikas Wadhawan, Group CFO, PropTiger.com.
Mumbai and Pune continue to top the charts with respect to traction, contributing to 53% of the total sales in Q3 2022 (July to September). A majority (27%) of the properties sold fell in the INR 45-75 lakh price range.
Attributing the scarcity of ready-to-move-in inventory, close to 19% of the units sold were RTMI properties, while the remaining 81% were under construction or new launches. According to our latest Consumer Sentiment Outlook (July-December 2022), 58% of the potential homebuyers are looking for RTMI properties.
“Despite the slight increase in overall interest rates, the demand for housing hasn’t dipped, thanks to renewed thrust towards home ownership. In fact, we’ve gauged from our report that the demand for residential properties has surpassed the pre-pandemic levels of 2019’s Q3 (July – September). With the festive sentiments and varied discounts offered, developers are sure to further pique consumers’ interest in purchasing the property,” Wadhawan said.
PropTiger.com’s Q3 (July to September) analysis for the new home market, shows a total of 1,04,820 units were launched in Q3 of 2022, with the new launches being at par with average quarterly levels of 1,00,000 units in 2015 .
Overall the new supply registered a YoY (Q3-2021 vs Q3-2022) growth of 61% compared to the same time last year, and on a QoQ which is Q2-2022 vs Q3-2022 basis, it grew marginally by 3%.
In terms of the price bracket, a majority of the new supply in Q3 2022 was concentrated in the INR 1-3 Cr bracket, taking 32% of the share in the total new property launches, closely followed by INR 45-75 lakh price range, which took 31% of the share.
“Post the lull of the pandemic, the tide has now turned in favour of the residential property market. Demand continues on an upward trajectory (July-September quarter of 2022) with property sales registering a stunning double-digit YoY growth. The positive homebuyer and investment sentiment regarding residential realty, along with the festive season sentiment booster, has encouraged developers to launch new projects,” said Ankita Sood, Head of Research, PropTiger.com.
“Overall, the trends signal for a positive outlook for residential realty in the coming quarters as demand will continue to strengthen on the back of levers such as festive discounts and flexible payment plans, underpinned by the renewed importance of home ownership,” she said.
Weighted average prices for new supply and inventory across top eight cities has appreciated by 3-9% YoY in Q3 2022. The surge in inflation, hike in input costs and premium charged over ready-to-move-in properties continue to put upward pressure on property prices across major cities.
There has been a significant decline in the inventory overhang — the estimated period builders in a particular market are likely to take to sell off their unsold stock at the existing sales velocity — dipping to 32 months during Q3-2022 (July – September) from last year’s 44 months in Q3-2021.
This comes on the back of sustained sales momentum as the sector steadily recovers from the pandemic’s impact. Kolkata had the lowest inventory overhang in Q3 2022 (24 months), while Delhi NCR had the highest (62 months).
The overall unsold inventory in Q3 2022 stood at 7.85 lakh units, with nearly 21% of the unsold inventory in the top 8 cities falling in ready-to-move-in category.
Source : ET