By Varun Singh

Housing demand (searches) in Mumbai grew 15.2% while supply (listings) grew 3.8% QoQ, revealed MagicbricksPropIndex Report Q1’ 2022

The report further observed that in Mumbai, smaller-sized 1 and 2 BHK apartments dominated the homebuyers’ preference and cumulatively accounted for 69% of the demand and 73% of the supply, during the period. The demand and supply for 2 BHK configurations accounted for 40% and 42%, respectively.

Navi Mumbai exhibited a similar trend with demand for 2 BHKs accounting for 48% of the total demand and 46% of the total supply in Q1 2022. In Thane, smaller configuration homes continued to dominate the housing market with 1 and 2BHK units comprising 78% of the total demand and supply, and 2 BHK constituting a demand share of 43%.

Commenting on the trend, Sudhir Pai, CEO, Magicbricks shared, “Across India, 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 Mumbai, the suburbs of the city 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.”

The report further identifies Malad and Kandivali as the residential hotspots in Mumbai during the quarter. While the overall upsurge in housing demand and supply in Mumbai was majorly driven by regulatory initiatives like the reduction of construction premium charges by half; western suburb localities such as Andheri, Borivali-Dahisar, Goregaon, and regions beyond Mira Road, witnessed the highest demand and supply during the quarter due to proximity to commercial office spaces, affordable pricing, and construction of the metro line.

In Navi Mumbai, New Panvel, Kharghar, Airoli, Taloja, Vashi, Kamothe, and Nerul were observed to be the most preferred localities, due to their connectivity to the rest of MMR. In Thane, localities such as Ghodbunder road and Dombivali continued to be the preferred micro-markets supported by factors such as connectivity, good amenities, and better access to employment hubs.

The report 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 AwasYojna andPMGati Shakti that are expected to further strengthen infrastructure and boost investments in the real estate sector.

Also Read: CSMT’s Original Glory To Be Restored By This Month

The post Residential demand in Mumbai increases 15.2% QoQ while supply grew 3.8% QoQ appeared first on Square Feat India.

By Varun Singh

Activity in India’s residential real estate segment has seen a further increase in the first three months of the year 2022 as record low home loan interest rates fuel consumer enthusiasm along with government-sponsored subsidy programmes.

According to a report by online real estate portal PropTiger.com, which is part of REA India that also owns Housing.com & Makaan.com, home sales and new launch numbers have shown a year-on-year growth in the period between January and March, 2022.

The report by the Gurgaon-headquartered company shows 70,623 units were sold in Q12022 as compared to 66,176 units sold in Q12021, registering 7% YoY growth. The improvement in terms of new supply was significantly higher, with a YoY growth of 50% in new launches during the same period. A total of 79,532 units were launched in Q1 2022 as compared to 53,037 units in Q1 2021.

The markets covered in the quarterly report, titled Real Insight Residential – January-March 2022, include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region and Pune.

“India’s housing sector is again emerging as a bright spot in the country’s economy, helping it spring out of the pandemic-induced slowdown. With further normalization of activity in the months to follow, we expect greater positive changes,” said Dhruv Agarwala, Group CEO, PropTiger.com, Housing.com & Makaan.com.

79% sales in Q1 reported in under-construction segment

In a quarter during which the demand for housing units priced in the range of Rs 45-75 lakh was the highest, Mumbai and Pune had the biggest share in housing sales, with their combined share standing at 56% in the overall sales.

Even though the recent joint consumer survey conducted by the group company of REA India, Housing.com and Industry body NAREDCO, found that 57 per cent of potential homebuyers would prefer to buy a ready-to-move-in (RTMI) property, 79% of the sales during the quarter ended in March was seen in the under-construction category, mainly because of the price advantage this segment offers over the ready to move in segment.

Half the cities show decline in launches

The MMR market did the heavy lifting in terms of new supply in the quarter ended March 31, demonstrating a 246% increase YoY. The stellar performance by this market was mainly responsible for an overall good performance of the housing market on this parameter as four of the eight markets covered in the analysis showed a decrease in new launches. Cities where new launches showed a decline during the March quarter include Ahmedabad, Chennai, Delhi-NCR and Kolkata.

Property prices climb too

As expected, housing price growth also accelerated during the quarter, with every market covered in the analysis showing an upwards movement in average rates of new properties. Most of this increase in rates can be attributed to the hike in prices of building materials.

The sharpest uptick in property prices was registered in Chennai, where average rate of properties has undergone a 9% appreciation in the past one year, the report shows. Pune and Ahmedabad followed this southern market closely in terms of price increase, with both markets witnessing an 8% rise in their average property rates.

Agarwala is of the opinion that house ownership may become pricier with various government-funded subsidy schemes coming to an end in March this year. This price appreciation would be further compounded by rising home loan rates if the RBI were to hike the benchmark lending rate, which may well be on the cards given inflationary pressures.  So far, the country’s central bank has maintained the repo rate— to which home loan interest rates in India are linked— at 4%.

Housing inventory increases marginally amid higher supply numbers

As activity in housing supply picked up pace, housing inventory swelled slightly, at an annual rate of 4%. Builders in India are sitting on an unsold stock consisting of 7,35,852 units as on March 31, 2022. This number stood at 7,05,344 units at the end of March 2021. With an individual share of 35% and 16%, respectively, Mumbai and Pune continue to contribute the most to this national housing inventory.

However, inventory overhang— the estimated period builders are likely to take to sell off their unsold stock— has declined to 42 months as against 47 months a year ago, primarily because of higher demand for housing.  Delhi NCR has the highest inventory overhang while Bangalore and Kolkata have the lowest.

Also Read: Stamp Duty extension to boost Real Estate

The post Residential real estate continues growth momentum in Q1 appeared first on Square Feat India.