• MMR & Pune led with addition of approx. 44,120 units & 18,920 units respectively, accounting for 54% of total launches in the top 7 cities; NCR recorded the highest quarterly rise of 134% in new launches in Q2 2024
• New supply in luxury (>INR 1.5 Cr) & premium segments (INR 80 lakh – INR 1.5 Cr) outpaced the mid segment (INR 40 lakh – INR 80 lakh) supply for the first time – 28% share each vs mid segment’s 26% supply share; affordable supply at 19%
• Available inventory in top 7 cities sees 1% quarterly decline & 6% yearly fall despite addition of new supply; NCR witnessed highest yearly decline of 22%
• Avg.  property prices in top 7 cities altogether see 7% quarterly rise but a significant 25% yearly rise – NCR records highest 10% quarterly jump, followed by Hyderabad with 9% increase & Bengaluru with 8% jump

The bull run in residential sales across the top 7 cities tamed down marginally in the second quarter of 2024, to the backdrop of increasing property prices and a high base record of the previous quarter (Q1 2024). Latest ANAROCK Research data reveals that housing sales witnessed a quarterly drop of 8% and stood at approx. 1,20,340 units in Q2 2024 across the top 7 cities,against approx. 1,30,170 units sold in Q1 2024. However, on a yearly basis, there has been a 5% rise in residential sales.

The two western cities – MMR and Pune – accounted for over 52% of the total sales in the top 7 cities with over 62,685 units sold altogether in these cities in Q2 2024. NCR is the only city to see a quarterly rise (of 6%) in housing sales in the quarter against Q1 2024.

New launches across the top 7 cities continued to break previous records with a 6% Q-o-Q rise – from approx. 1,10,870 units in Q1 2024 to approx. 1,17,170 units in Q2 2024. MMR and Pune saw the maximum new supply, accounting for 54% of the total new launches across the top 7 cities. Individually, the two cities saw 31% and 1% quarterly increases in their new supply, respectively.

Notably, NCR witnessed a 134% Q-o-Q jump in new supply in Q2 2024 against Q1 2024.

Anuj Puri, Chairman – ANAROCK Group, says, “The quarterly decline seen in housing sales is essentially because of the all-time high base considered in the previous quarter, when more than 1.30 lakh units were sold. Most importantly, this drop is also due to the significant hike in property prices over the last one year, which in turn has prompted many investors to take a breather.”

Data indicates that average residential prices have seen a quarterly jump of 7% while annual rise of a significant 25% in the top 7 cities.

“NCR witnessed the highest quarterly jump of 10% in Q2 2024 while Hyderabad saw the highest yearly jump of 38% in average residential prices,” says Puri. “However, if prices are kept in check henceforth, housing sales may not be majorly impacted in the upcoming quarters.”

New Launch Overview

The top 7 cities recorded approx. 1,17,170 new units launched in Q2 2024, against approx. 1,10,870 units in Q1 2024 – increasing by 6% over the previous quarter. The key cities contributing to new launches in Q2 2024 were MMR (Mumbai Metropolitan Region), NCR, Pune, and Bengaluru, which together accounted for 82% of the supply addition.

• MMR saw approx. 44,120 units launched in Q2 2024 – increasing by 31% over Q1 2024 and over 2% on yearly basis. More than 64% new supply was added in the sub-INR 80 lakh budget segment.
• Pune added new supply of approx. 18,920 units in Q2 2024 compared to approx. 18,770 units in Q1 2024 – an increase of 1%. On a yearly basis, the city recorded a 11% decline in new supply. Over 73% of the new supply in Q2 2024 was added in the mid and premium segments (units priced between INR 40 lakh to INR 1.5 Cr.)
• Hyderabad added approx. 13,750 units in Q2 2024, a quarterly decline of 40% but a 31% rise against the corresponding period in2023. Over 69% of the new supply in Q2 2024 was added in the mid and premium price segments.
• Bengaluru added approx. 16,020 units in Q2 2024, declining quarterly by 3%. On a yearly basis, there was 40% rise. Approx. 83% of the new supply was added in the premium and luxury segments (INR 80 Lakh onwards) combined.
• NCR saw a whopping 134% increase in new launches against Q1 2024, with approx. 17,030 units launched in Q2 2024. A whopping 82% of the new launches in second quarter this year were in the luxury segments priced >INR 1.5 Cr.
• Chennai added approx. 5,180 units in Q2 2024, a quarterly decline of 29% against Q1 2024 and a yearly increase of 3% over Q2 2023. Over 93% was added in the mid and premium segments.
• Kolkata added approx. 2,150 units in Q2 2024, a decrease of 50% over Q1 2024 and 13% drop against Q2 2023. Approx. 64% new supply was added in the mid segment priced between INR 40 lakh – INR 80 lakh.

Source: ANAROCK Research

Overall Sales Overview

Approx. 1,20,340 units were sold in Q2 2024 across the top 7 cities – a quarterly decline of 8% over Q1 2024. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 92% sales in the quarter. On a yearly basis, the top 7 cities recorded a 5% increase in housing sales with approx. 1,15,090 units sold back in Q2 2023.

• NCR is the only city to see quarterly growth (of 6%) in housing sales among the top 7 cities – from approx. 15,650 units in Q1 2024 to approx. 16,550 units in Q2 2024.
• MMR witnessed the maximum sales at approx. 41,540 units in Q2 2024, against approx. 42,920 units in Q1 2024 – declining by 3%.
• Pune witnessed housing sales of 21,145 units in Q2 2024, decreasing by 8% over Q1 2024.
• Bengaluru toosaw housing sales decrease by 8% in Q2 2024 against Q1 2024, with approx. 16,360 units sold in the second quarter this year.
• Chennai saw approx. 5,020 units sold in Q2 2024 – decreasing by 9% against Q1 2024.
• Hyderabad recorded sales of approx. 15,085 units in Q2 2024, a drop of 23% over Q1 2024.
• Kolkata saw housing sales decrease by 18% in the quarter against preceding quarter (Q1 2024); approx. 4,640 units were sold in Q2 2024.

Source: ANAROCK Research

Price Movement

Average residential property prices across the top 7 cities increased in the range of 4-10% in Q2 2024 when compared to Q1 2024 amid high residential sales. NCR recorded the highest quarterly jump of 10% with the average price at INR 6,800 per sq. ft. as of Q2 2024-end.

On a yearly basis, the top 7 cities recorded a significant average price rise of between 13 – 39%. Hyderabad recorded the highest yearly jump of 39% in average residential prices in Q2 2024 against Q2 2023.

Available Inventory

Amid robust sales, available inventory across the top 7 cities reduced by 1% on a quarterly basis to approx. 5.78 lakh units as of Q2 2024-end. On a yearly basis, there has been a 6% decline in the available inventory across the top 7 cities. NCR witnessed the highest yearly decline of 22% – from approx. 1.11 lakh units by Q2 2023-end to approx. 86,900 units as of Q2 2024-end. This is a significant reduction in this top realty hotspot in the country which reeled under excessive unsold stock in previous years.

Also Read: New-age buildings dominate India’s office market, accounting for 84% of total net absorption since 2021

The post Housing Sales Taper in Q2 2024 in Top 7 Cities – 8% Q-o-Q Fall, up 5% Y-o-Y appeared first on Square Feat India.

Going by the momentum in housing sales in the ongoing festive period and that of the first three quarters this year, 2022 will likely breach the previous peak of 2014 with all-time high sales across the top 7 cities. Latest ANAROCK data projects total sales in the top 7 cities to exceed 3.6 lakh units in 2022. In the previous peak year of 2014, the top 7 cities saw 3.43 lakh units sold.

The January-September period of 2022 saw housing sales and new launches surpass the full-year readings of 2019 with approx. 2.73 lakh units sold in 9M 2022 and new launches at 2.65 lakh units. 2019 saw over 2.61 lakh units sold in the entire year, while new supply stood at 2.34 lakh units.

MMR and NCR have retained their top slot rankings in the first nine months of 2022. Approx. 1,30,450 units were collectively sold in these two regions, accounting for 48% of the total sales in the top 7 cities. Other high-selling cities were Pune, Bengaluru, and Hyderabad, which accounted for a 42% cumulative sales share. 

Housing sales remained strong despite average property prices increasing in 2022, with the annual price appreciation in Q3 2022 being the best in the past seven years – 6% against Q3 2021. 

Anuj Puri, Chairman, ANAROCK Group, says, “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-19 era – despite interest rates hikes of 190 bps, increased property rates, and the conspicuous lack of festive season offers and discounts this year.”

A combination of end-user and investor demand continues to zero in on projects by large and listed developers. These players report consistently high sales and are stepping up new supply infusions into the market. Total new launches in 2022 will remain lower than the previous peak of 2014, which saw approx. 5.45 lakh homes launched across the top 7 cities. 

Current trends indicate that launches in these cities will exceed 3.4 lakh units in the whole of 2022. The first nine months of 2022 saw 2.65 lakh units launched in the top 7 cities, with MMR and Hyderabad recording the maximum new launches in this period and accounting for 54% of the total new supply.

RESIDENTIAL SECTOR: DEMAND-SUPPLY DYNAMICS

Source: ANAROCK Research

• Total housing sales will exceed 3.6 lakh units in the top 7 cities in 2022; the last peak in 2014 saw 3.43 lakh units sold
• The first 9 months of 2022 saw new supply and absorption exceed the whole of 2019 with approx. 2.73 lakh units sold and 2.65 lakh units launched 
• MMR & NCR led 9M 2022 with approx. 1,30,450 units sold – 48% of the share of the total sales
• New launches in 2022 are lower than the previous peak of 2014 when >5.45 lakh units were launched in the top 7 cities 
• MMR & Hyderabad top new supply in 9M 2022, contributing 54% of total new launches

Also Read: Strong demand drives industrial and warehousing leasing by 9% YoY

The post Housing Sales in 2022 Breach 2014 Record appeared first on Square Feat India.

By Varun Singh

Housing sales in top 7 cities saw a surge of 29% Y-o-Y in Q1 2021, thus breaching Pre-COVID-19 levels.

The housing sector in the top 7 cities staged an impressive comeback post-COVID-19. ANAROCK’s Q1 2021 data shows that housing sales in the top 7 cities increased by 29% and new launches by 51% during this quarter against the corresponding period in 2020.

As many as 58,290 homes were sold in the top 7 cities in Q1 2021 in comparison to 45,200 units in Q1 2020 – effectively breaching pre-COVID levels. MMR and Pune together accounted for 53% of housing sales in the quarter – MMR sales increasing by 46% annually, and Pune by 47%. With approx. 8,670 units sold, Bengaluru was the only city in the top 7 to not record a major yearly change in total sales numbers in this quarter.

New launches in the top 7 cities yielded 62,130 units in Q1 2021, against 41,220 units in Q1 2020. Again, Bengaluru was the only city to see a 11% yearly drop in new launches. MMR, Pune, and Hyderabad together contributed 66% of the total new supply in the quarter.

Despite spiralling new launches in this and the previous quarter, unsold inventory in the top 7 cities saw a nominal yearly decline – from 6.44 lakh units towards Q1 2020-end to approx. 6.42 lakh units by Q1 2021-end. However, on a q-o-q basis, unsold stock rose by 1% due to a robust healthy new launch pipeline in most cities.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “Demand boosters like stamp duty cuts, further reductions in home loan rates by most banks (to 6.70%) and ongoing developer discounts and offers helped the residential sector stage a convincing comeback in Q1 2021. Egged on by buoyant sales and enthusiastic consumer sentiment in the October-December period, developers launched several new projects in this quarter – with some spill-over from the pandemic-dampened 2020 pipeline.”

“MMR and Pune were the most active in this quarter since the limited-period stamp duty cuts and other sops and discounts substantially reduced acquisition cost,” says Puri. “MMR’s homebuyers have responded proactively to the bottomed-out property prices in the country’s most expensive real estate market. This is adequately vouchsafed by the significant rise in property registrations in Mumbai in the first two months of the year.”

Housing affordability will potentially remain extremely favourable throughout 2021. If the current sops and incentives continue, we will see sustained vibrancy in the upcoming quarters as well. End-users will drive maximum demand.

Mid-segment housing saw the maximum new launches in the quarter with a 43% overall share, with the affordable housing segment accounting for 30%. The supply of luxury housing (priced >INR 1.5 Cr) also rose by 31% in Q1 2021 against the corresponding period in 2020.

Q1 2021 Overall Sales Overview

Around 58,290 units were sold in Q1 2021 – a yearly increase of 29% over Q1 2020.  NCR, MMR, Bengaluru, and Pune together accounted for 83% of the sales in the quarter.

• Hyderabad recorded the maximum rise in sales in this quarter among the top cities. City sales increased by 64% – from 2,680 units in Q1 2020 to approx. 4,400 units in Q1 2021.
• MMR and Pune also saw significantly boosted sales in this quarter when compared to other top cities. Sales in MMR and Pune increased by 46% and 47% respectively and stood at approx. 20,350 and 10,550 units, respectively.
• In Chennai, approx. 2,850 units were sold – an increase of 30% over Q1 2020.
• In Kolkata and NCR, housing sales increased by 10% and 8% respectively over Q1 2020, with approx. 2,680 units, and 8,790 units, respectively.
• In Bengaluru, approx. 8,670 units were sold as compared to 8,630 units sold in Q1 2020.

Q1 2021 New Launch Overview

The top 7 cities saw around 62,130 new homes launched in Q1 2021 (as opposed to 41,220 units in Q1 2020) – a significant increase of 51% Y-o-Y. The key cities contributing to new unit launches in Q1 2021 were MMR, Hyderabad, Pune, and Bengaluru, together accounting for 79% of supply addition.

• In MMR, approx. 14,820 units were launched – a significant increase of nearly 41% over Q1 2020. Over 66% of the new supply was added in the sub INR 80 lakh budget range. 
• Bengaluru added approx. 7,690 units in Q1 2021, a yearly decrease of 11% over Q1 2020. Over 68% of the new supply was added in the sub INR 40 lakh to INR 1.5 Cr price bracket.
• Pune added new supply of approx. 13,820 units in Q1 2021, compared to 7,790 units in Q1 2020 – a massive rise of 77%. Over 60% of the new supply was added in sub INR 40 lakh to INR 80 lakh budget segment.
• NCR added approx. 6,750 units in Q1 2021, a Y-o-Y increase of 9%. Approx. 52% of the new supply was in the affordable segment.
• Hyderabad recorded a massive spike of 273% in new supply from the previous year, with approx. 12,620 units launched in Q1 2021.
• Chennai added approx. 4,620 units in Q1 2021, a Y-o-Y increase of 25% over Q1 2020.
• Kolkata added approx. 1,810 units in Q1 2021, an increase of 66% over Q1 2020. Approx. 41% of the new supply was in the affordable segment.

Price Movements

Average property prices in the top 7 cities saw some movement in Q1 2021, with most cities recording a rise of 1-2% over Q1 2020 – except Kolkata, where prices remained stagnant. NCR and Bengaluru saw property prices rise by 2% during the year.

Unsold Inventory

Changes in the overall unsold stock in Q1 2021 over Q1 2020 were negligible, as new supply between Q4 2020 and Q1 2021 outpaced overall absorption numbers. MMR witnessed the highest yearly reduction in unsold inventory of 8%, while Bengaluru and Kolkata witnessed yearly reductions of 7% each. In contrast, unsold stock increased by 81% in Hyderabad in the same period, due to considerable new supply hitting this city in the last two quarters – Q1 2021 and Q4 2020.

Also Read: Seeking A Housing Loan? Read This New RBI Policy

The post Housing Sales In Q1 2021 Breach Pre-COVID Levels appeared first on Square Feat India.