Amid the receding impression of Omicron and a big decline in caseload, housing gross sales throughout the highest eight metro cities witnessed round 8-10% progress QoQ within the first quarter of 2022, in accordance with 99acres Insite report, titled ‘India Residential Market Update January-March 2022’.
As per the report, new provide within the quarter elevated roughly by 24% QoQ. Over 550 tasks have been added throughout the interval, together with new launches in addition to under-construction housing societies. Despite improved recent provide, the stock overhang within the quarter ended March 2022 slipped to round 5% to six.5 lakh items. The common property costs elevated marginally by a % within the studied interval.
However, amid the common building prices rising by round 12% because of oil worth hike, realtors in Mumbai and Delhi NCR threatened to stall building or enhance the house values in case of no respite. The rental market witnessed some transactions after many quarters within the backdrop of workplaces reopening and espousing hybrid mannequin.
Speaking on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, mentioned, “Residential markets across the top eight cities together contributed to a 4-year high in the sales volume in Jan-Mar 2022. Homebuyers were seen visiting sites and closing deals in new homes and resale markets despite initial lockdowns due to the rising virus load in January 2022. Nevertheless, increasing raw material costs due to the Ukraine-Russia conflict kept the builder fraternity worried. Developer bodies in Maharashtra and Delhi threatened to halt construction activities in the absence of government intervention.”
With finance trade giants just like the State Bank of India (SBI) and HDFC surpassing the pre-COVID ranges of residence mortgage sanctions as on January and March in FY 2022, the homeownership urge for food available in the market was excessive. The sentiment remained sturdy because the Reserve Bank of India (RBI) continued to keep up a impartial stance on the repo fee and reverse repo fee at 4 % and three.5 %, respectively, for the tenth consecutive time in February 2022.
Ready-to-move items or tasks nearing completion continued to seize the utmost demand share amid zero GST and well timed possession barring cities like Ahmedabad, the place residence consumers’ inclination was majorly lop-sided in the direction of under-construction items. While 2 BHK items noticed most offtake, demand for 3 BHK items additionally gained a steep hike. Multi-decadal low-interest charges and affordability ratios in outstanding cities like Mumbai, Pune, Ahmedabad and Chennai, standing at 20-25 % at the moment towards 53 % a decade in the past, corroborated the market sentiment.
New housing society launches elevated by roughly 60 % YoY. Surprisingly, Chennai recorded multifold progress in yearly launches. Approximately 77 tasks have been registered with TN RERA in Jan-Mar 2021, towards 16 tasks listed a yr again. Delhi NCR and Bangalore noticed the utmost decline in new provide YoY of round 80 % and 40 %, respectively.
Rental sentiment improved throughout metros in Jan-Mar 2022. Resumption in workplaces helped buoy rental demand. Unlike the final yr, when the owner group struggled to search out tenants, Jan-Mar 2022 noticed transactions bettering. This, nonetheless, couldn’t translate into any hike in common leases, YoY.
Source: www.financialexpress.com”