Housing sales are most likely to hit an all-time high this year, especially in seven major cities. At 3.6 lakh units, in Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad and Pune, the housing sales will be reportedly in a strong demand across all price categories despite heavy interest rates on home loans and property rates, suggests an Anarock report. Here is a detailed report on SURFACES REPORTER (SR).
Sales to hit an all-time high
The housing demand had been strong during the festive month despite the rise in interest rates on home loans from 6.5 per cent to nearly 8.5 per cent. As per the property consultant, the sales are expected to touch 3.6 lakh units in the 2022 calendar year. In 2014, the previous high had been recorded when the housing sales reached 342,980 units across primary markets of Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad and Pune.
During the January-September period of the current calendar year, the report informs that the sales of residential properties have reached 272,710 units. This has crossed the 2019 numbers of 261,360 units. According to Anuj Puri, Chairman, Anarock Group, “2022 will create residential market history in India, having already breached all previous highs and continuing to witness strong sales momentum in the ongoing festive season. Homeownership sentiment retained the vibrancy ushered in by the COVID era, despite interest rates hikes (by RBI) of 190 basis points, increased property rates, and the conspicuous lack of festive season offers and discounts this year.”
In the last year alone, housing prices have risen by at least 10 per cent. The housing demand in India is expected to stay strong in the coming years, informs Vipul Roongta, Managing Director, HDFC Capital, as demographic dividend and relatively buyers’ less reliance on home loans will sustain the momentum despite higher interest rates.
Reportedly, in 2013, the housing sales stood at 3,18,400 units; 3,42,980 units in 2014; 3,08,250 in 2015; 2,39,260 units in 2016; 2,11,140 units in 2017; 2,48,310 units in 2018; and 2,61,360 units in 2019. However, due to the COVID-19 pandemic and nationwide lockdown, sales dropped to 1,38,340 units in 2020. But the market revived in the 2021 calendar year, where the sales bounced back to 2,36,520 units during the same period.
As per the report, end-users and investors continue to zero in on projects by large and listed developers. The new launched in 2022 are expected to remain lower than the previous peak of 2014 which witnessed 5,45,230 homes launched across the top seven cities. The first nine months of 2022 have witnessed 5,45,230 homes launched across the top seven cities. That being said, major real estate developers have reported a decent high growth in their sales in the past 18 months. Reportedly, Prestige Estates, Macrotech Developers (Lodha Group), Godrej Properties and DLF Ltd are the top performers in annual sales bookings, while Oberoi Realty, Sobha, Mahindra Lifespace, Indiabulls Real Estate, Brigade Enterprises, Puravankara Ltd and Shriram Properties are also in the lead.
Image credits: Andrii Yalanskyi (Image for representational purpose)