Q3 2022 Housing Sales Up 4% Q-o-Q Across Top 7 Cities, 41% Jump Annually

• Over 88,230 units were sold in Q3 2022, against 84,930 units in preceding quarter & approx. 62,800 units in Q3 2021
• MMR recorded the highest sales of approx. 26,400 units, followed by NCR with approx. 14,970 units
• Approx. 93,490 units were launched in Q3 2022 against 82,150 units in Q2 2022 – an increase of 14%; in Q3 2021, approx. 64,560 units were launched – an annual rise of 45%
• MMR & Hyderabad witnessed maximum new units launched in Q3 2022 – approx. 36,000 units & 15,530 units, respectively
• NCR restricted new supply in the quarter to approx. 6,400 units despite robust housing sales
• 36% of total new supply was in the mid-segment (INR 40– 80 lakh), 28% in the premium segment (INR 80 lakh – INR 1.5 Cr); 18% each in the luxury & affordable segments
• Amid increased new supply, existing inventory saw a 1% rise in Q3 2022 over Q2 2022; annually, inventory declined 4% in Q3 2022 across the top 7 cities – currently at approx. 6.30 lakh units
• Residential prices in top 7 cities saw b/w 1-2% Q-o-Q rise in Q3 2022, 4-7% annually

Mumbai, 30 September 2022: Defying odds like the inauspicious ‘shraadh’ period, excessive monsoons, and rising property prices and interest rates, housing sales momentum continued unthwarted in the third quarter of 2022. Latest ANAROCK data reveals that as many as 88,230 units were sold across the top 7 cities in Q3 2022 – a 4% quarterly increase and 41% annual rise.

Q2 2022 had seen approx. 84,930 units sold across the top 7 cities; in the corresponding period of 2021, approx. 62,800 units were sold. MMR witnessed the highest sales of approx. 26,400 units among the top 7 cities, followed by NCR with approx. 14,970 units.

Approx. 93,490 units were launched in Q3 2022, against 82,150 units in Q2 2022, thus increasing by 14%. In Q3 2021, approx. 64,560 units were launched, so the annual increase is a whopping 45%.

MMR and Hyderabad witnessed the highest new launches in Q3 2022, with approx. 36,000 units and 15,530 units, respectively. Interestingly, despite buoyant sales, NCR considerably restricted its new supply in comparison to other cities including MMR, Bengaluru, Pune, and Hyderabad.

In terms of budget segments, 36% of the total new supply was launched in the mid-segment (INR 40– 80 lakh), 28% in the premium segment (INR 80 lakh – INR 1.5 Cr) while 18% each in the luxury (price range) segment and affordable (price range) segments.

Amid increased new supply, existing housing inventory saw a 1% quarterly rise in Q3 2022. However, on annual basis, inventory declined by 4% in Q3 2022 across the top 7 cities. As on Q3 2022-end, the available inventory stands at over 6.30 lakh units.

Anuj Puri, Chairman – ANAROCK Group, says, “The momentum of both housing sales and new launches stayed strong in the top 7 cities in Q3 2022 despite major headwinds. The appetite for homeownership has remained undeterred, with maximum sales being driven by the end-users. Interestingly, there has been increased new supply by the leading and listed developers, who also reported robust housing sales. “This trend will very likely continue in the upcoming festive quarter as well since homeownership sentiment has increased hugely post the pandemic. To maintain the sales momentum during the ongoing festive season, developers have rolled out lucrative launch offers which are being received well in the market,” says Puri.

“However, if inflation remains at elevated levels forcing RBI to aggressively increase interest rates, there might be some turbulence in the market,” says Puri. “ANAROCK's most recent Consumer Sentiment Survey finds that high inflation has majorly impacted the disposable incomes of at least 61% of respondents. The survey also found that housing sales may be impacted to some extent if home loan interest rates breach the 9.5% mark.”

New Supply Overview

The top 7 cities witnessed new unit launches of approx. 93,500 units in Q3 2022, against 82,100 units in Q2 2022 – an increase of 14% over the previous quarter. On a yearly basis, there was 45% jump. In Q3 2021, approx. 64,560 units were launched in the top 7 cities.

The key cities contributing to new supply in Q3 2022 were MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, which together accounted for 86% of the total addition.

• MMR saw approx. 36,000 units launched in Q3 2022 – an increase of approx. 21% over Q2 2022 and a massive 118% annual rise. Over 68% of the new supply in Q3 2022 was added in the INR 40 lakh to INR 2.5 Cr budget segment
• Hyderabad added approx. 15,530 new units in Q3 2022 compared to 15,780 units in Q2 2022 – a marginal decline of 2%. On a yearly basis, there was 6% increase in new launches
• Pune added approx. 14,730 units in Q3 2022, a decrease of 11% over the previous quarter but a 43% rise annually. Over 78% of the new supply was added in the mid and upper mid-segment i.e., INR 40 lakh – INR 1.5 Cr
• Bengaluru added approx. 13,915 new units in Q3 2022, a quarterly increase of 11% and 81% annually. Approx. 74% of the new supply was added in the mid and upper mid-segment i.e., INR 40 lakh – INR 1.5 Cr
• NCR saw an increase of 57% in new launches in Q3 2022 with approx. 6,400 units launched, a 24% decline compared to Q3 2021
• Chennai added approx. 2,400 units in Q3 2022, a quarterly increase of 62% over the previous quarter and a 19% annual decline
• Kolkata added approx. 4,510 units in Q3 2022, a significant increase of 124% over Q2 2022 and 13% annually. Approx. 78% of the new supply was added in sub-INR 80 Lakh budget segment.

Source: ANAROCK Research

Housing Sales Overview

Approx. 88,230 units were sold in Q3 2022 – a marginal increase of 4% over Q2 2022 but a 41% jump annually.  NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 90% of the sales in the quarter.

• MMR recorded the highest sales among the top 7 cities in Q3 2022, with approx. 26,400 units sold – a marginal quarterly increase of 2%, but a 26% yearly rise
• NCR recorded approx. 14,970 units sold in Q3 2022, a marginal decrease of 2% over the last quarter, but rising by 46% annually
• Pune recorded approx. 14,080 units sold in Q3 2022, an increase of 13% over Q2 2022 and a 45% annual increase over Q3 2021
• Bengaluru saw approx. 12,690 units sold in Q3 2022, a quarterly increase of 10%, and a 48% rise annually
• Hyderabad recorded approx. 11,650 units sold in Q3 2022, a marginal increase of 4% over Q2 2022 but a 73% increase over Q3 2021
• Kolkata saw approx. 4,950 units sold in Q3 2022, a nominal increase of 3% over the previous quarter but a 54% increase over the corresponding quarter in 2021
• Chennai saw approx. 3,500 units sold in Q3 2022, a decrease of 8% over Q2 2022 and a marginal annual increase of 3%

Source: ANAROCK Research

Available Inventory

Available inventory increased by 1% in Q3 2022 over Q2 2022 due to robust new supply in the current quarter. However, on an annual basis, available inventory declined by 4% in Q3 2022 across the top 7 cities.

Price Movements

Residential property prices across the top cities registered a quarterly increase in the range of 1-2% in Q3 2022. On an annual basis, prices have risen in the range of 4-7% primarily due to an increase in input costs and demand comeback post-COVID.

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