Bengaluru records 23% drop in unsold housing inventory in Q1 2022

Bengaluru has registered the steepest drop of 23% in unsold housing inventory amongst important cities in Q1 2022, with demand outpacing supply. The residential market of the technology-led town has risen as the pandemic witnessed technology companies and startups functioning well. After Bengaluru, Kolkata and Pune saw the subsequent steep drop in unsold inventory with a 15% and 11% decrease on a year-on-year (YoY) basis, indicating a recovery in demand. On the other hand, unsold inventory in Hyderabad rose 41% YoY due to a growth in launches in the city, as per the first edition of the housing price-tracker report, by the Confederation of Real Estate Developers' Associations of India (CREDAI), Colliers, and Liases Foras. January-March quarter 2022 saw the new launches back to the pre-covid level. The coming quarters witness an increasing flow of new launches. The fresh supply will cause progress in volumes. Thus, the sales will continue to increase despite the recent growth in the interest rates, said Pankaj Kapoor, Managing Director, Liases Foras. Mumbai Metropolitan Region (MMR), which accounts for the highest unsold inventory at 32%, witnessed stable unsold inventory in the last year despite new launches, stable unsold inventory represents a revival in demand in the market. However, the average residential costs in India witnessed an upward trend and grew 4% YoY during Q1 2022 after a prolonged slowdown due pick-up in housing demand across most cities and soaring costs of raw materials for almost two years. The cost appreciation exceeded pre-covid levels across all eight metro cities, including Mumbai, Pune, Hyderabad, Kolkata, Chennai, Delhi, and Bengaluru, according to the report. Ramesh Nair, Chief Executive Officer, India, and Managing Director, Market Development, Asia, Colliers, told the media that it is exciting to see India’s residential market functioning well and surpassing market expectations after so many years. End-users have confidence in the market and hope credible developers will witness higher sales this year as end-users are discerning about the developer's reputation. As per the finding, Delhi-NCR witnessed the highest YoY shift with an 11.3% surge in housing costs, and prices in Bengaluru, and on the other hand, MMR stayed largely stable. However, New Mumbai and western suburbs witnessed a 9%-10% growth in prices on a YoY basis. The government’s intervention to control the increase in the price of raw materials and turn control inflation as the Indian economy had remained resilient while grappling with the strains of price inflation of raw material costs in the last 18 months, said Harsh Vardhan Patodia, President of CREDAI National. Image Source Also read: Pune, MMR, B’luru top cities for property investment: Report