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Amid the improved overall economic scenario and income stability after the COVID-19 pandemic, there has been a rise by 5-9 per cent in the average value of new and available properties in top cities in the second quarter.
This is also due to the rise in input costs, inflationary pressures and premium attached with ready-to-move-in inventory, however, had little impact on the homebuyer sentiment.
According to the Real Insight Residential – April-June 2022 report, there was no negative effect on either sales or launches during the quarter.
The study was taken place for cities like Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region and Pune.
"Even though the RBI increased the repo rate twice during the quarter to bring it to 4.9 percent, home loans remained largely affordable during the period. The biggest booster to housing demand has been the increased importance of owning a property which has been further backed by the consumer confidence in the overall economic scenario and impending income stability," Moneycontrol quoted Group CFO at Housing.com, PropTiger.com and Makaan.com -- Vikas Wadhawan -- as saying.
The quarterly analysis of India’s top eight residential markets by REA-backed PropTiger.com said the sharpest price hike was in Pune at 5-9 per cent, followed by Chennai (9 per cent), Ahmedabad (8 per cent), Bengaluru (7 per cent) and Delhi (6 per cent) respectively.
The report further said that the housing sales during the quarter ending 30 June registered a sequential 5 percent on-quarter in the calendar year 2022.
During this period, around 74,330 units were sold across the top eight cities as against 70,620 in Q1. The sequential increase was sharpest in Ahmedabad (30 per cent) and Hyderabad (21 per cent). Kolkata (13 per cent) and Mumbai (12 per cent) followed Hyderabad.
However, sales were down by 10 per cent in Delhi-NCR market due to unavailability of the right product. "The age of available RTMI inventory is high and there are few launches due to developer consolidation. Hence, homebuyers don't have much choice," Moneycontrol quoted Head of Research, Housing.com, PropTiger.com and Makaan.com -- Ankita Sood -- as saying.
Meanwhile, the report added, that the during this period, the current unsold stock in the country is at 7,63,650, which is will take approximately 2.8 years to at the current sales velocity of the top eight cities.
The financial capital -- Mumbai -- had an unsold inventory of 272890 units or 38 months; Pune had 117990 units or 25 months and Delhi NCR had 99,850 units or 65 months, the report said.
“We see developers returning to the market in full swing in the second quarter of the year, thus catapulting the new supply back to the 2015 levels. Looking at the overall encouraging trends, we anticipate the sustained demand momentum to increase strength to strength especially amid the upcoming festive season which will push the growth trajectory further in ensuing quarter," Sood added.