Indian real estate sector experiences strong recovery during Q1 2022

Mumbai led home sales from January to March with 21,548 units

The Financial Express reported that the Indian real estate market is steadily recovering, as experts are projecting a 15 percent CAGR growth, which will contribute 13 percent to the country’s GDP by 2025.

Real estate consultancy Knight Frank India revealed that Q1 2022 saw housing sales hit a four-year high of 78,627 units, which was a nine-percent year-on-year (YoY) growth, reported Mint.

Mumbai led sales from January to March with 21,548 units. On the other hand, the Delhi NCR recorded the highest YoY growth in new home sales during the period, increasing by 123 percent to 15,019 units. It is the second-largest market in terms of growth by volume.

The third-largest market on the list, Bengaluru, registered 34 percent YoY growth in Q1, with 13,663 new unit sales while Ahmedabad grew 34 percent YoY with 4,105 units.

Shishir Baijal, chairman and managing director, Knight Frank India attributed the favourable environment for homebuyers to the best affordability levels, healthy wage growth, and low interest rates.

As a result of healthy and sustained homebuyer activity, price increases will be gradual, and developers will be able to weather the rising prices of basic inputs such as cement and steel.

More: Hyderabad, India’s property market to watch out for

JLL India shared that during Q1 2022, 60,307 apartments were launched in the top seven cities, which was a 36 percent growth over the previous quarter. This is the most launches in a single quarter since Q1 2014. With the exception of Delhi NCR and Kolkata, quarterly releases in Q1 2022 were higher on a sequential basis in all of the main cities.

According to The Economic Times, Mumbai accounted for more than a quarter of all new launches. Bengaluru and Hyderabad came in second and third, with 23 percent and 21 percent of the launches, respectively.

In Q1 2022, approximately 4,700 plots and villas were also launched across India’s top seven cities. These ventures also attracted a lot of interest from both users and investors.

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