Newsblare

newsblare logo

Sign in

Advisor Network Economic & Finance Market Overview Real Estate State & Urban

Housing Sales Moderate in Q2 2022, MMR and NCR Outperform Other Cities

  • Approx. 84,930 units were sold in Q2 2022, against 99,550 units in Q1 2022
  • MMR recorded highest sales of approx. 25,785 units, followed by NCR with approx. 15,340 units
  • Approx. 82,150 units were launched in Q2 2022 against 89,150 units in Q1 2022 – a decline of 8%; MMR & Pune were the only markets where new launches saw a q-o-q rise of 26% & 14%, respectively
  • NCR restricted new supply in the quarter to just 4,070 units
  • 33% of total new supply was in the mid-segment (INR 40– 80 lakh), 29% in the premium segment (INR 80 lakh – INR 1.5 Cr); 18% of new supply was added in the luxury segment
  • Existing inventory stable in Q2 2022 over Q1 2022 amid low housing sales; however, annually inventory declined 4% in Q2 2022 across the top 7 cities
  • Residential prices saw a 2-3% Q-o-Q rise in Q2 2022, 4-7% annually

Mumbai, 30 June 20222: In a major fallout of increased property prices and lending rate hikes, the top 7 cities saw housing sales moderate by 15% – from approx. 99,550 units in Q1 2022 to approx. 84,930 units in Q2 2022, finds the latest ANAROCK Research data. MMR recorded the highest sales of approx. 25,785 units in Q2 2022, followed by NCR with approx. 15,340 units.

Developers restricted new supply to approx. 82,150 units in Q2 2022 against 89,150 units in Q1 2022 – an 8% decline in the period. MMR and Pune were the only markets to see new launches increase by 26% and 14% q-o-q, respectively. The remaining top 5 cities saw reduced new launches.

MMR saw approx. 29,730 units added in Q2 2022, while Pune added approx. 16,560 units. NCR saw a massive 56% drop in new supply – from 9,300 units in Q1 2021 to approx. 4,070 units in Q2 2022.

Anuj Puri, Chairman – ANAROCK Group, says, “Inflationary pressures on input costs compelled developers to increase property prices in the past few months, and RBI unleashed two rate hikes that swelled up home loan interest rates. These two factors combined to hike the overall property acquisition cost for homebuyers, leading to a dip in housing sales. The fact that after two years, there was no new Covid-19 wave to disrupt family travel plans during the school vacation months (April to June) could also have impacted sales.”

“As for the declining new launches, developers would have held back fresh supply while they sought clarity on the unfolding market sentiments amid increased housing purchase costs,” says Puri. “Given that we saw two back-to-back quarters of robust housing sales and new launches (Q4 2021 and Q1 2022), a dip was to be expected.”

New Launches Overview

The top 7 cities recorded 82,150 new units launched in Q2 2022 as compared to 89,150 units in Q1 2022, an 8% decrease over the previous quarter.

The key cities contributing to new unit launches in Q2 2022 were MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, which together accounted for 91% of the new supply addition. Only MMR and Pune saw increased new launches.

  • Approx. 29,730 units were launched in MMR – an increase of approx. 26% from Q1 2022. Over 66% of the new supply was added in the INR 40 lakh to INR 2.5 Cr budget segment.
  • Pune added approx. 16,560 units in Q2 2022, a q-o-q increase of 14% over the previous quarter. Over 73% of the new supply was added in the sub-INR 80 lakh budget segment.
  • Hyderabad added approx. 15,780 new units in Q2 2022 compared to 21,550 units in Q1 2022 – a 27% decrease. Over 92% of the new supply was added in the INR 40 lakh to INR 2.5 Cr budget segment
  • Bengaluru added approx. 12,510 units in Q2 2022, a marginal quarterly decline of 5%. Approx. 74% of the new supply was in the mid and upper mid-segment (INR 40 Lakh – INR 1.5 Cr)
  • NCR saw a significant decrease of 56% in new launches during this versus the previous quarter, with approx. 4,070 units launched in Q2 2022
  • Chennai added approx. 1,480 units in Q2 2022, a quarterly decrease of 52% over the previous quarter. Approx. 65 % of the new supply was added in sub-INR 1.5 Cr budget segment.
  • Kolkata added approx. 2,020 units in Q2 2022, a massive decrease of 48% over Q1 2022. Approx. 65% of the new supply was added in INR 40 Lakh – INR 1.5 Cr. budget segment.
New Launches (In Units) & Q-o-Q % change
 Cities Q2-2022 Q1-2022 % Change (Q1-2022 Vs Q2-2022)
NCR4,0709,300-56%
MMR29,73023,64026%
Bangalore12,51013,210-5%
Pune16,56014,49014%
Hyderabad15,78021,550-27%
Chennai1,4803,060-52%
Kolkata2,0203,900-48%
Total82,15089,150-8%
Source: ANAROCK Research

Housing Sales 2022 Overview

Approx. 84,930 units were sold in Q2 2022 – a 15% decrease over Q1 2022.  NCR, MMR, Bengaluru, Pune, and Hyderabad accounted for 90% of the sales in the quarter. 

  • MMR recorded the highest sales in Q2 2022 among the top 7 cities. With approx. 25,785 units sold in Q2 2022, the city witnessed a quarterly decline of 11%
  • NCR recorded the second-highest sales of approx. 15,340 units in Q2 2022, a decrease of 19% over the previous quarter
  • Pune saw approx. 12,500 units sold in Q2 2022 – a decline of 11% over Q1 2022
  • Bengaluru saw approx. 11,505 units sold in Q2 2022 – a quarterly decrease of 14%
  • Hyderabad recorded approx. 11,190 units sold in Q2 2022, decreasing by 15% over Q1 2022
  • Kolkata recorded the sale of approx. 4,800 units in Q2 2022, a decrease of 20% over the previous quarter
  • Chennai saw approx. 3,810 units sold in Q2 2022 – a 24% decrease over Q1 2022.
Housing Sales (In Units) & Q-o-Q % change
 Cities  Q2-2022 Q1-2022 % Change (Q1-2022 Vs Q2-2022)
NCR15,34018,835-19%
MMR25,78529,130-11%
Bangalore11,50513,450-14%
Pune12,50014,020-11%
Hyderabad11,19013,140-15%
Chennai3,8104,985-24%
Kolkata4,8005,990-20%
Total84,93099,550-15%
Source: ANAROCK Research

Available Inventory

Available inventory remained more or less stable at 6.25 lakh units in Q2 2022 (against 6.28 lakh units in Q1 2022) due to low quarterly sales. Annually, however, accumulated inventory declined by 4% across the top 7 cities.

Price Movements

Residential property prices across the top 7 cities saw a quarterly increase of 2-3% in Q2 2022. Annually, prices have risen by between 4 and 7%, primarily due to increased input costs and good demand post-Covid-19.

Related: India Residential Real Estate – Service class buyers drive housing demand

4 Comments

Leave a Reply

Your email address will not be published.