Housing demand rises 4.6% QoQ in Q1, 2022; supply has remained stable, Mumbai (15.2%), Gurugram (9.6%), Noida (8.2%) and Delhi (5.6%) have witnessed highest QoQ growth in demand.
By Varun Singh
Recovering from the pandemic-induced slowdown, the residential real-estate industry demonstrated inherent strength in Q1’ 2022, with pan India housing demand rising 4.6% QoQ and 6.7% YoY, reveals Magicbricks’ latest PropIndex Report for Q1’ 2022.Mapping trends in 13 cities across the country, the report highlights that Mumbai (15.2%), Gurugram (9.6%), Noida (8.2%) and Delhi (5.6%) witnessed highest QoQ growth in demand while Greater Noida (6.0%), Mumbai (3.8%), Ahmedabad (3.2%), and Chennai (2.9%) exhibited maximum QoQ growth in supply. The report also shares that delivery, size, location, connectivity and amenities are significant deciding factors for homebuyers and homes located in gated communities with health and security facilities have emerged as most preferred.
Elaborating on the same, Sudhir Pai, CEO, Magicbricks commented, “Increasing project completions, attractive offers from developers, supportive policies and improving employment opportunities have boosted buyer-confidence in the real-estate industry. While the present geopolitical situation is impacting the supply chain and input costs, we expect the momentum gained thus far to continue across demand and supply backed by new launches tailored to the evolving needs of consumers and all-time low home loan interest rates. In each of the cities mapped, the peripheral areas continue to be hotspots of demand driven by infrastructure development. These trends signal optimism and a stable outlook for the industry for the coming quarters.”
Market specific take-aways from Report Q1’ 2022:
1. Bengaluru’s housing demand increased 3.7% QoQ. There was continued preference for bigger homes; 2BHK and 3BHK constituted 79% of the total demand and 81% of the total supply.
2. Chennai’s residential market is driven by demand in affordable localities, which accounted for 68% of total demand. The supply witnessed a growth of 2.9% QoQ and is likely to continue increasing in the coming quarters with new project launches, indicating a healthy outlook.
3. Delhi’s housing demand grew 5.6% QoQ while the average price increased 0.4% QoQ. The residential market was dominated by 3BHK and above configurations that constituted 64% of the demand. In Noida and Greater Noida, the aggregate demand for residential markets witnessed a 6.8% QoQ growth, whereas supply increased 0.2% QoQ and average prices increased 2.1% QoQ.
4. Demand in Mumbai’s residential market increased 15.2% QoQ. New residential launches increased the supply by 3.8% QoQ; while average prices increased 1.4% QoQ. The demand and supply for 2BHK configuration constituted 40% and 42% respectively in Q1’ 2022.
5. Pune’s housing demand and supply observed a QoQ increase of 3.9% and 2.2%, respectively. Home buyers are inclined towards 2BHK configuration; 2 and 3 BHK units commanded the bulk of the demand with a combined share of 78%.
Highlights from Report Q1’ 2022
– The pan India demand increased 4.6% QoQ and 6.7% YoY. Mumbai (15.2%), Gurugram (9.6%), Noida (8.2%) and Delhi (5.6%) witnessed highest QoQ growth in demand.
– The cumulative supply remained stable during the quarter while showing a growth of 4.7% YoY. Greater Noida (6.0%), Mumbai (3.8%), Ahmedabad (3.2%), and Chennai (2.9%) witnessed maximum QoQ growth in supply.
– The pan-India prices increased 1.3% QoQ and 6.4% YoY, reflecting resilience of the housing markets vis-a-vi other real estate assets
– The prices of ready to move properties increased 1.7% QoQ and 5.8% YoY. Thane, Greater Noida, Kolkata, Ahmedabad, and Bengaluru witnessed maximum QoQ price increases of 3.6%, 2.8%, 2.2%, 2.1% and 2.0% respectively.
– The prices of under-construction properties were largely stable during the quarter with an increase of 0.6% QoQ nationally. Prices in Noida, Delhi, Chennai, Ahmedabad, and Hyderabad saw QoQ increases of 7.4%, 3.5%, 2.1%, 1.6%, and 1.6% respectively.
The report further predicts an onward trajectory for 2022 due to external stimuli such as digitisation of land records, increased allocation of INR 48,000 crores under PM Awas Yojna and PM Gati Shakti, that are expected to further strengthen infrastructure and boost investments in the real estate sector.
Also Read: Many Homebuyers Expect Housing Prices Hike in 2022
