Economy

Housing sales in India rise 71% y-o-y, reach 90% of pre-Covid levels

Abishek Law | | Updated on: Jan 03, 2022

Mumbai–MMR saw the highest sales of 76,400 units | Photo Credit: Rasi Bhadramani

Of the new launches, the mid-segment – ₹40-80 lakh – had the maximum share at 39%

India’s residential real estate saw a 71 per cent rise in sales year-on-year (y-o-y) in 2021 (January-December) with nearly 2.37 lakh units being sold across the seven key markets that include Delhi-NCR, Mumbai, Chennai, Bengaluru, Hyderabad, Pune and Kolkata. The sales stood at 90 per cent of pre-Covid levels (2019).

Mumbai-MMR or the Mumbai Metropolitan Region saw the highest sales of 76,400 units, followed by the Delhi-NCR or the National Capital Region with 40,050 units. On a y-o-y basis, Hyderabad reported the highest absorption of 197 per cent (2021 vs 2020) (See Chart 1).

According to ANAROCK data, new launches saw an 85 per cent jump y-o-y to around 2,37,000 units (up from 1,28,000 in 2020). These were nearly pre-Covid level numbers.

Housing sales in top 7 cities breach pre-Covid19 levels in Q1

Of the new launches, the mid-segment – ₹40-80 lakh – had the maximum share at 39 per cent followed by the affordable segment (priced under ₹40 lakh) with a 26 per cent share. The property launches in the ₹80 lakh to ₹1.5 crore price bracket had a 25 per cent share.

Amongst cities, Mumbai-MMR and Pune together accounted for over 76 per cent of the new supply in 2021. On a city-wise basis, Kolkata and Hyderabad saw an increase in new supply by 290 per cent and 144 per cent, respectively (See Chart 2).

Increase in property prices likely

“That launches were back to pre-Covid levels is very significant, and housing sales fell short of 2019 by a mere 10 per cent are positive indicators. Of the four quarters, Q4 2021 (October-December) was by far the best, with housing sales in the top seven cities attaining a new high, since 2015. Nearly 90,860 units were sold,” said Anuj Puri, Chairman, ANAROCK Group.

According to him, the input cost pressure and supply chain issues may induce a 5-8 per cent increase in property prices. End-users will remain the dominant market force and peripheral areas of the larger cities will continue to see both supply and demand traction.

Housing sales may rise 30% in 2021: Anarock report

Average residential property prices across the top cities increased by 3-5 per cent in 2021 compared to 2020. Bengaluru and MMR witnessed the highest price rise of 5 per cent each while Chennai and Kolkata saw a 3 per cent increase.

Increased launches and overall absorption in the top seven cities in 2021, when compared to 2020, resulted in minor changes in available inventory. However, compared to 2019, there has been a 2 per cent reduction in the available inventory by the end of 2021.

Data indicates that the seven major cities together have an unsold stock of around 6,38,000 units in 2021-end. Among the cities, the MMR and NCR areas saw a y-o-y decline of 10 per cent and 5 per cent, respectively.

Grade-A developers are expected to increase their market share and sales will come back to the pre-pandemic levels of 2019.

Source: ANAROCK Research

Source: ANAROCK Research

Published on January 03, 2022
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