By Varun Singh

Quarterly housing sales in Q1 2022 are at an all-time high since 2015 with approx. 99,550 units sold across the top 7 cities, reveals latest ANAROCK Research data. This is a 71% yearly rise against approx. 58,290 units sold back in Q1 2021. The two leading realty hotspots – MMR and NCR – accounted for over 48% of the total sales in the top 7 cities, with NCR witnessing an over 114% yearly jump.

New launches across the top 7 cities witnessed a 43% yearly rise – from 62,130 units in Q1 2021 to over 89,150 units in Q1 2022. As in the previous quarter, MMR and Hyderabad saw the maximum new supply, accounting for 51% of the total new launches across the top 7 cities. Individually, the two cities saw 59% and 71% yearly increases in their new supply, respectively.

Despite spiraling new launches in this and the previous quarter, unsold inventory in the top 7 cities saw a approx. 2% yearly decline – from 6.42 lakh units towards Q1 2021-end to approx. 6.28 lakh units by Q1 2022-end. Even on a q-o-q basis, unsold stock saw a 2% dip across the top 7 cities. Chennai, MMR, and NCR saw the highest yearly declines in Q1 2022 – by 11%, 10% and 9%, respectively.

“The bull run in the housing market continued in the first quarter of 2022, with approx. 10% q-o-q and 71% y-o-y growth in sales, thus recording all-time high quarterly sales since 2015,” says Anuj Puri, Chairman – ANAROCK Group. “The impact of the third Covid-19 wave was significantly lower than of the preceding two waves. The unrelenting appetite for homeownership amid the pandemic has coupled with a growing certainty of impending price rises to speed up housing sales velocity.”

New Launch Overview

The top 7 cities recorded new launches of around 89,150 units in Q1 2022 against 62,130 units in Q1 2021, increasing by 43% over the previous year’s corresponding period. The key cities contributing to new launches in Q1 2022 included MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, together accounting for an 82% supply addition.

• MMR saw approx. 23,640 units launched in Q1 2022 – a significant increase of nearly 60% over Q1 2021. More than 57% new supply was added in the sub-INR 80 lakh budget segment
• Hyderabad added approx. 21,550 units in Q1 2022, a yearly increase of 71% over the corresponding period last year. Over 63% new supply was added in the INR 80 lakh to INR 2.5 Cr price bracket
• Pune added new supply of approx. 14,490 units in Q1 2022 compared to 13,820 units in Q1 2021 – an increase of 5% 
• Bengaluru added approx. 13,210 units in Q1 2022, a significant yearly increase of 72%. Approx. 65% new supply was added in the mid-range and premium segments, i.e., the INR 40 Lakh – INR 1.5 Cr. price bracket
• NCR saw an increase of 38% in new launches over Q1 2021 of the previous year with approx. 9,300 units launched in Q1 2022
• Chennai added approx. 3,060 units in Q1 2022, a yearly decrease of 34% over Q1 2021. It was the only city to see a decline in new supply 
• Kolkata added approx. 3,900 units in Q1 2022, a significant increase of 115% over Q1 2021. Approx. 55% new supply was added in the affordable segment

Overall Sales Overview

Approx. 99,550 units were sold in Q1 2022 – a significant increase of 71% over Q1 2021. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 89% sales in the quarter.

• Hyderabad recorded sales of 13,140 units in Q1 2022, a massive spike of 199% over Q1 2021 – mainly due to continuous flow of new supply in the city over the past 5-6 quarters
• NCR and Kolkata also saw massively increased sales in Q1 2022 when compared to the other top cities. Sales in NCR and Kolkata increased by 114% and 124% respectively over Q1 2021, with approx. 18,835 and 5,990 units sold, respectively
• MMR and Bengaluru saw housing sales increase by 43% and 55% respectively in Q1 2022 against Q1 2021, with approx. 29,130 and 13,450 units sold, respectively
• Chennai saw approx. 4,985 units sold – an increase of 75% over Q1 2021
• Pune saw 14,020 units sold in Q1 2022, increasing by 33% over Q1 2021

Available Inventory 

When compared to Q1 2021, the increase in overall absorption in the top 7 cities in Q1 2022 resulted in an overall reduction of 2% in the available inventory by Q1 2022-end – from approx. 6.42 lakh units in Q1 2021-end to approx. 6.28 lakh units by Q1 2022-end. Chennai, MMR, and NCR witnessed the highest reductions in available inventory in Q1 2022 when compared to Q1 2021 – by 11%, 10%, and 9% respectively.

Price Movement

Average residential property prices across the top 7 cities increased in the range of 2-5% in Q1 2022 when compared to Q1 2021, mainly due to increase in the prices of construction raw materials. Hyderabad recorded the highest 5% annual jump. 

Experts from Mumbai real estate speak on the high sales registered in the city in the month of March. Mumbai saw a total of 16,726 sales getting registered generating a revenue of Rs 1,160 Crore for the state.

Sandeep Runwal – President, NAREDCO Maharashtra
“Mumbai saw a huge surge in property registrations for the month of March which is very much similar to the robust sales last year which was due to the stamp duty reduction by the Maharashtra Government. Over 16000 housing units registered in this month indicates that consumers have grabbed the last opportunity to purchase properties as the prices are set to rise due to the factors like 1% metro cess, ready reckoner rates, increased stamp duty and hike in raw material prices. We are requesting the intervention of the Housing Ministry to curb the increased difficulties faced by realtors and buyers or it will be a big setback for the Government’s mission of ‘Housing for All’ as affordable housing will be a distant dream.”

Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI
“The month of March 2022 has yet again witnessed record property registrations in Mumbai with the demand continuing to be robust. The strong sales was evidenced as the homebuyers rushed in to buy properties with a fear of price hike. But the industry isn’t out of the crisis situation yet after the pandemic as we will soon witness an upward revision in the prices due to the rising construction costs and higher stamp duty as a result of the metro cess and ready reckoner rates. We will continue to urge the Government to look into the rising prices in interest of the homebuyers.”

Mr. Ram Naik, Director, The Guardians Real Estate Advisory
“The financial year ended with great news for the Mumbai real estate market with many home buyers at the property registrar office that the registrar had to work overnight. This once again proves that Indian real estate has become a user market. The home buyers know exactly when to buy, where to buy and how to buy. This also symbolizes how much home buyers in Mumbai have become price savvy while buying a new home. How even a one percent saving in the stamp duty can reduce the decision-making period of a customer. This also signifies that there is a genuine demand for homes in MMR market and if the government had passed a deferment on the metro-cess and the construction cost had remained under control then we would have seen a bull run in this new financial year.”

Jitesh Lalwani – President, Homesync Real Estate Advisory
“Mumbai has witnessed an impressive ascent in property deals with close to 16000 units of sale registrations in the month of March 2022. Given the current scenario of steep rise in property prices from April onwards, owing to the increase in stamp duty, ready reckoner rates, raw materials prices and metro cess, we have seen homebuyers take the utmost advantage in the current month resulting in such a huge contribution to the state’s revenue.”

Also Read: Mumbai in March Generates Over ₹1k Crore from Stamp Duty

The post In Q1-22, Over 99550 Units Sold in Top 7 Cities appeared first on Square Feat India.

By Varun Singh

MahaRERA’s recently released list of 407 projects that ‘lapsed’ in 2021 across the state of Maharashtra includes 388 residential and 19 commercial projects. ANAROCK Research’s deep dive into the data reveals that the 388 of these lapsed projects account for approx. 20,955 housing units, of which 52% (approx. 10,682 units) are already sold. The remaining 10,093 units remain unsold.

The top 5 cities in the state with the maximum lapsed projects are MMR, Pune, Aurangabad, Nagpur, and Satara, respectively.

• MMR has the maximum number of ‘lapsed’ residential projects – 145 projects accounting for approx. 9,236 units, of which approx. 5,983 units or 65% are sold while 3,253 units are unsold
• Pune has at least 92 lapsed housing projects comprising 4,852 units, of which 2,488 or approx. 51% units are sold, with 2,364 units remaining unsold
• In Aurangabad, the registration numbers of 27 housing projects have expired. There are approx. 1,116 units in these projects, of which 254 units (23%) are sold while 862 units remain unsold
• In Nagpur, approx. 23 housing projects account for 1,392 units, of which 777 or approx. 56% units are sold while the remaining 615 are unsold
• In Satara, RERA registration has lapsed for 23 housing projects comprising 1,664 units, of which 661 or approx. 40% units are sold while 1,003 remain unsold.

What Lies Beneath

Santhosh Kumar, Vice Chairman – ANAROCK Group, says, “The RERA registration numbers of these projects lapsed for several reasons. RERA was implemented in 2017, and a year later the IL&FS crisis held real estate – particularly the residential segment – hostage. NBFCs was a major funding source for the real estate industry, with banks reluctant due to rising NPAs. NBFC funding slowed down significantly with the IL&FS crisis.”

Private equity funding into the sector also slowed down to a trickle as PE players became skittish and hyper-sensitive to market signals and began exercising immense caution before lending to developers. Grade B and C developers were the most impacted as lending to them was minimal, so construction of various projects was impacted.

Just as funding issues began to get resolved, the pandemic worsened the situation for medium to small players due to disruptions in demand, and the supply of raw materials. In the last two years, buyers have been heavily favouring branded projects; medium-to-small players took the biggest hit, with their projects now accounting for most on the list of lapsed RERA registrations.

“Fortunately, Government-backed funds are now identifying projects that near to completion, and providing last-mile funding,” says Santhosh Kumar. “Also, some of the larger developers are taking over and reviving other smaller projects.”

Also Read: At Rs 1.15 lac psf, Samudra Mahal Apartments sold for Rs 42 Crore

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