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10 February, 2023
The Indian real estate sector is showing signs of resilience despite higher inflationary trends, as well as higher home loan borrowing costs, and a weaker global economic environment. The sector has seen significant recovery, with home sales crossing 73 per cent of new launches across nine top regions in India, as per a report.
The strong sales in the real estate sector indicate a strong and organized effort from developers to clear launched projects and deliver them on time. The report stated that home sales in Q4 2022 in India’s top regions accounted for 69,349 newly launched units, which shows a fall of 30 per cent from Q4, FY21 at 98,735 units. The home sales in the top 9 regions were at 1,20,275 units in Q4, 2022, compared to 1,09,464 units in the same quarter in FY2021.
The highest increase in sales of residential property was seen in Hyderabad at 24 per cent, 23 per cent in Navi Mumbai, and Mumbai at 22 per cent on a Y-o-Y basis. Only Delhi-NCR and Chennai saw a decline in sales at 7 per cent and at 2 per cent, respectively. Overall, home sales saw an increase of 10 per cent in October-December 2022, as compared to the same period in the last financial year.
Despite challenges in the real estate sector, home sales have recovered in the current fiscal year. The demand for residential property has seen an increase, in spite of increasing mortgage loans, as home buyers are anticipating an appreciation of properties as well as end users for the units. India is witnessing high sales in residential real estate, with recorded sales in Q4 CY’22 being the highest in the last quarter with limited new launches in Tier 1 cities. New launches are expected in the coming months, as older inventory is getting sold, sooner than expected.
Home sales saw an increase in Q4 across Pune, Thane, Hyderabad, Bengaluru, Mumbai, Navi Mumbai, and Kolkata, on a Y-o-Y basis. The only two regions which saw a decline in home sales are Delhi NCR and Chennai, at 7 per cent and 2 per cent respectively, in home sales.