CHENNAI: Residential sales in Q2 2022 (April-June) in the Rs 1.5 crore plus price tag increased by over 270% Year-on-Year (Y-o-Y). The two larger markets of Delhi NCR and Mumbai saw maximum sales in the quarter in this price bracket. Apartments priced above Rs 1.5 crore had a share of 15% in the quarterly sales in Q2 2022. The higher levels of residential sales in the premium category show increased demand for bigger homes and buyer confidence coming back to the market.
However, apartments in the price bracket of Rs 50 lakh-75 lakh still had a larger share of 28% in the sale during the quarter. Bengaluru and Pune recorded the majority of the respective city sales in this price category according to JLL’s Residential Market Update – Q2 2022.
The residential market recorded sales of over 53,000 units in Q2, 2022 which is an increase of 171% Y-o-Y as compared to Q2 2021 across the top 7 cities. This demonstrates the rising demand due to containment of the pandemic and buyer confidence coming back to the market. On a sequential basis, sales increased by 3% during the quarter. Appreciation in residential prices due to rising input costs and interest rates led to almost flat sequential growth in Q2 2022. Mumbai is the largest contributor to sales 23% followed by Bengaluru with 21% and Delhi NCR with 19% of the overall sales. Another 6,013 residential units in the plots and villa categories were sold during Q2, 2022 across the top seven cities. The majority of the traction was seen in the southern cities of Bengaluru, Chennai, and Hyderabad.
The increase in input costs and the strong demand has caused an appreciation in residential prices with capital values showing a 3-7% Y-o-Y increase across all cities except Hyderabad, which showed resilience by clocking double-digit price growth over the same period. “Developers have partially passed on the input cost increases which are now reflected in the current residential prices.
New launches also entered the market at higher prices. With interest rates in an upcycle, costs for owning a house are likely to increase further. This may cause some short-term deflation in demand but with changing dynamics around home ownership and with interest rates still on the lower side, residential demand is likely to remain on its growth trajectory,” said Samantak Das, Chief Economist, and Head Research & REIS, India, JLL.
Meanwhile, new launches of over 63,000 units were recorded in Q2, 2022, an increase of 6% Q-o-Q and 135% Y-O-Y. Mumbai dominated with a 27% share in the new launches followed by Hyderabad and Pune, which contributed 25% and 21% respectively. Quarterly launches were higher on a Q-o-Q basis in Delhi NCR, Hyderabad, Mumbai, and Pune. It saw a declining quarterly trend in Bengaluru, Chennai, and Kolkata.