Residential unit sales increase in 2022; Bengaluru posts 34% YoY growth

Despite the Covid-19 third wave, the sales of residential units in the top eight cities in the first quarter of 2022 have registered an increase of nine per cent year-on-year to reach a four-year quarterly high of 78,600 units of which 13,663 are from Bengaluru, which a posted a YoY growth of 34 per cent in the first three months of the year.

The latest market assessment report by Knight Frank said Mumbai recorded the largest volume in sales of residential units from January 1 to March 31, 2022, at 21,458 followed by the Delhi-National Capital Region (NCR) at 15,019 units, Bengaluru (13,663), Pune (10,305), and Hyderabad (6,993).

Chennai recorded the lowest sales among the eight cities surveyed with 3,376 units, even as Ahmedabad sold 4,105 and Kolkata 3,376. Though Mumbai remained the largest market by volume, it registered a YoY decline of 9 per cent, and so is Pune, and Chennai, which registered a YoY decline of 25 and 17 per cent respectively.

Bengaluru, India’s very own Silicon Valley, registered a YoY growth of 34 per cent in Q1 2022, with sales of 13,663 new units between January and March 2022. Delhi–NCR’s registered sales grew the most at 123 per cent YoY to 15,019 new homes in the first three months of the year, making it the second-largest market by volume.

In Bengaluru, the report said businesses in the city experienced growth in the last year leading to financial security as well as growth in wealth.

“This confidence is adequately apparent in the way the residential markets have behaved with both demand and supply rising. In Q1 2022, the city registered a record sale of 13,663 units, a 34% YoY growth. In tandem with demand, the residential supply remained robust in Q1 2022 with 10,106 launches, a ten-quarter high,” the report added.

Real estate was one of the sectors that suffered the most during the Covid-19 pandemic as sales went to an all-time low. Input costs also increased as the prices of raw materials registered an increase in the past two years.

The report also said the sales far exceeded the pre-pandemic average quarterly sales volume for the third consecutive quarter signifying a sustained recovery in demand across the country. Shishir Baijal, Chairman & Managing Director, Knight Frank India, said the growth in the residential market has been impressive for the key markets of India over the last few quarters.

“Low-interest rates, best affordability levels, healthy wage growth, and the waning pandemic with lower risk of further disruptions have created a favourable environment for homebuyers who have rediscovered the need for new and better housing,” he said.

With 78,171 new units added in the first quarter of 2022, the new launches registered a growth of 3 per cent YoY over the same time last year. All cities posted a YoY growth in per sq. ft prices during the said period, prices grew the most in Bengaluru at 7 per cent YoY followed by Pune and Mumbai at 5 per cent and 4 per cent YoY respectively.

After being subdued for a long period of time, the Delhi–NCR market has recorded 15,019 units. The report said even more impressive was the rise in launches which was a whopping 692 per cent YoY leading to the addition of 12,800 new units.