Based on the robust momentum observed in housing sales during the ongoing festive season and the performance in the first three quarters of 2022, indications suggest that this year is poised to surpass the previous peak in 2014, achieving an all-time high in housing sales across India’s top seven cities – Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Pune, Bengaluru, Hyderabad, and Kolkata.
According to the latest data from real estate consultancy firm ANAROCK, total sales in these top seven cities are projected to exceed 3.6 lakh housing units in 2022, signaling a recovery for the sector that faced challenges during the Covid-induced economic slowdown. In the previous peak year of 2014, 3.43 lakh apartment units were sold across these cities.
In the initial nine months of 2022, both housing sales and new launches have surpassed the full-year figures of 2019. Approximately 2.73 lakh units were sold, and 2.65 lakh units were launched from January to September. This outperforms the entire year of 2019 when 2.61 lakh units were sold, and new supply stood at 2.34 lakh units.
MMR and NCR maintained their leading positions in the first nine months, collectively selling around 1,30,450 housing units, accounting for 48% of the total sales. Pune, Bengaluru, and Hyderabad, contributing 42% to the cumulative sales share, were the other high-performing cities.
Despite an increase in average property prices in 2022, with an annual price appreciation of 6% in the third quarter – the highest in seven years compared to Q3 2021 – the demand for home purchases remained strong.
Anuj Puri, Chairman of ANAROCK Group, expressed confidence that 2022 would go down in history as a landmark year for the residential market in India. Despite challenges such as a 190 bps interest rate hike, rising property rates, and the absence of festive season offers, the sentiment for homeownership retained its vibrancy.
The market dynamics reveal a focus on projects by large and listed developers, with both end-user and investor demand converging. These developers report consistently high sales and are actively contributing to new supply injections into the market. However, the total number of new launches in 2022 is expected to remain lower than the previous peak in 2014, which witnessed around 5.45 lakh houses being launched across the top seven cities.