Residential sales in India’s top 8 cities reached a nine-year high, 2022!
In eight of the main cities in India, 2022 is anticipated to see a “breakthrough” for the real estate industry. In 2022, house sales in these cities significantly increased, reaching new records for the decade. The most recent information from Knight Frank’s 2022 Real Estate Report indicates that sales in these cities reached a nine-year high of 312,666 units. In line with this, new releases have increased as well. The industry for renting office space also saw a significant increase. in 2019 The data shows that 312,666 residences were sold in these 8 cities, an increase of 34% over the previous year. Bangalore comes in third with sales of 53,363 units, up 40%, while NCR comes in second with sales of 58,460 units, up 67% YoY. Mumbai tops the market with sales of 85,169 units, up 35% YoY.
With Kolkata as an exception, According to Knight Frank research, all markets had improvements in sales and new launches following a 10% decline in house sales in 2022. In terms of sales volume during the previous nine years, the second half of 2022, from July to December, was second only to the first half of 2022. The eighth-largest city reported sales of 153,961 units in the second half of FY22, an increase of 15% YoY. The research claims that to combat inflation, central banks have increased interest rates and driven up mortgage costs, with Indian housing markets experiencing a slight sequential volume fall.
Additionally, Mumbai reported the highest-ever sales of flats in the second half of 2022 with 40,969 units, a 19% increase over the previous year. The biggest percentage rise in housing sales occurred in Hyderabad (32% YoY), followed by Ahmedabad and NCR (25% YoY and 24% YoY, respectively). As a result of growth rates that have mostly remained stable in 2022 despite several setbacks, the residential sector has been a shining example of growth, according to KnightFrank India Chairman and CEO Shishir Baijal. These dynamics are the outcome of a latent demand that may have been caused by a prospective mentality shift in favor of homeownership. Loan rates and sales momentum continue to be robust. Housing demand is still being supported by steady economic expansion, stable income levels, and modest price rises.
Sales-wise, these top 8 markets delivered brand-new units totaling 328,129 units, up 41% over the previous year. Mumbai continued to dominate the market for new releases in 2022 with 90,434 units, followed by Bangalore and NCR with 63,233 units each and 43,420 units altogether. On a percentage basis, NCR experienced a 207% increase in new launches. Kolkata saw a growth of 64% YoY, Bengaluru saw a growth of 42% YoY, and Ahmedabad saw a growth of 64% YoY. It should be noted that, on a unit basis, Kolkata had the fewest new releases (12,330).
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