India sees surge in home sales, top cities include Mumbai and Bengaluru

Both demand and supply of properties have grown during the quarter ending in September despite rising interest rates

It was recently reported that home sales in India’s eight major residential markets, including Bengaluru and Mumbai, went up 40 percent in the first three quarters of 2022, reaching 232,396.

In Q3 2022, home sales expanded at an annual rate of 15 percent, reaching 73,691 units, up from 64,010 units the year before.

According to Outlook, the 21,450 residential units sold in Mumbai represented 29 percent of overall sales in the top eight markets. Bengaluru had the second-highest sales volume in Q3 2022, selling 13,013 units.

Both demand and supply of properties have grown during the quarter ending in September despite rising interest rates, reported The Economic Times.

More: Luxury properties in India gain traction, piquing interest from HNIs and NRIs

Moreover, the Magicbricks PropIndex showed that aggregate demand increased by more than 7.3 percent along with a six percent growth in supply. Also, during this period, buoyancy in demand for residential properties resulted in a 9.1 percent YoY and a two percent sequential rise in housing prices.

In an exclusive interview with Financial Express, Angad Bedi of BCD Group talked about how rising interest rates have affected residential sales.

He mentioned how the upcoming festive season is expected to see record-high sales of housing properties. This is said to be driven by pent-up demand, along with strong consumer sentiment.

Angad also emphasised that the country’s economy remains resilient and that real estate is still a favoured asset class among potential buyers. 

Additionally, surveys show that businesses will be offering double-digit wage increases in 2022. Therefore, despite the growth in interest rate and a slight increase in property costs, people are still adamant about wanting to own a home. Developers are also providing a variety of properties in both the budget and luxury segments as they recognise this surge.

Ultimately, despite the interest rate hike, there is a huge chance that India’s housing market will thrive in the years to come.

The Property Report editors wrote this article. For more information, email: [email protected].