Residential property market bounces back; new launches reach 2015 levels
With over 100,000 new units launched in top 8 markets & 365 per cent jump in y-o-y sales, homes are in demand.
- Jun 29, 2022,
- Updated Jun 29, 2022 1:28 PM IST
The real estate market may have been badly hit due to lockdowns and other COVID-related disruptions but not anymore. As the economy scales back to normalcy, the country’s residential real estate market has bounced back.
Data from industry research firm PropTiger shows, sales of residential homes have jumped by a whopping 365 per cent year-on-year (YoY) during the April-June period. While in April-June 2021, some 15,970 units were sold in top eight metro markets, this time the offtake has grown to 74,330 units.
What is more encouraging, say industry experts, is the extent of growth that has been witnessed in top markets like Mumbai and Bangalore. In Mumbai, the largest residential real estate market in the country, sales of new homes have jumped by an astounding 673 per cent YoY to 26,150 units in the quarter -- up from 3,380 units last year.
While in Bangalore - the third largest market after Delhi-NCR - some 8,350 units were sold this quarter. This is 425 per cent higher than last year’s 1,590 units. In Delhi-NCR, however, the extent of growth was comparatively lower -- at 60 per cent -- from 2,830 last year same quarter to 4,520 units.
“Even though the RBI increased the repo rate twice during the quarter to bring it to 4.90 per cent, home loans remained largely affordable for the period analysed. 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 Chief Financial Officer at REA India that owns Housing.com, PropTiger.com and Makaan.com.
Moreover, on the onset of demand recovery, realtors have begun to launch new projects which were missing in recent years. Data shows, new launches have spiked by 368 per cent YoY in the top eight markets to 102,130 units -- up from 21,840. While last year, the market had been impacted due to the second COVID wave, growth in April-June was noticeable even compared to the previous quarter, when residential market was already booming.
On a quarter-on-quarter basis, new launches have jumped 28 per cent from 79,530 units in the January-March 2022 quarter. According to Ankita Sood, head of research at REA India, developers returned to the market “in full swing during” the April-June quarter, which catapulted the new supply back to 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,” she said.
The real estate market may have been badly hit due to lockdowns and other COVID-related disruptions but not anymore. As the economy scales back to normalcy, the country’s residential real estate market has bounced back.
Data from industry research firm PropTiger shows, sales of residential homes have jumped by a whopping 365 per cent year-on-year (YoY) during the April-June period. While in April-June 2021, some 15,970 units were sold in top eight metro markets, this time the offtake has grown to 74,330 units.
What is more encouraging, say industry experts, is the extent of growth that has been witnessed in top markets like Mumbai and Bangalore. In Mumbai, the largest residential real estate market in the country, sales of new homes have jumped by an astounding 673 per cent YoY to 26,150 units in the quarter -- up from 3,380 units last year.
While in Bangalore - the third largest market after Delhi-NCR - some 8,350 units were sold this quarter. This is 425 per cent higher than last year’s 1,590 units. In Delhi-NCR, however, the extent of growth was comparatively lower -- at 60 per cent -- from 2,830 last year same quarter to 4,520 units.
“Even though the RBI increased the repo rate twice during the quarter to bring it to 4.90 per cent, home loans remained largely affordable for the period analysed. 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 Chief Financial Officer at REA India that owns Housing.com, PropTiger.com and Makaan.com.
Moreover, on the onset of demand recovery, realtors have begun to launch new projects which were missing in recent years. Data shows, new launches have spiked by 368 per cent YoY in the top eight markets to 102,130 units -- up from 21,840. While last year, the market had been impacted due to the second COVID wave, growth in April-June was noticeable even compared to the previous quarter, when residential market was already booming.
On a quarter-on-quarter basis, new launches have jumped 28 per cent from 79,530 units in the January-March 2022 quarter. According to Ankita Sood, head of research at REA India, developers returned to the market “in full swing during” the April-June quarter, which catapulted the new supply back to 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,” she said.