Residential sales attain 4-year high across top 8 cities in Jan-Mar
Real Estate

Residential sales attain 4-year high across top 8 cities in Jan-Mar

Despite the inconvenience caused by the third wave of the Covid 19 pandemic, residential property sales in the country's top eight cities hit a four-year high in January-March.

According to Knight Frank India research, quarterly sales reached a high of 78,627 residential units in the first quarter of the new year, up 9% from the previous quarter, while average capital prices of residential properties rose 1 to 7% in all leading regions as demand remained strong.

New property launches totalled 78,171 units throughout these areas, indicating that supply maintained up with demand. During the quarter, Mumbai had the highest volume of sales, with 21,548 units sold, and Delhi-NCR had the biggest year-over-year gain in new home sales, with a 123% increase.

For the third straight quarter, sales were substantially above the pre-pandemic average quarterly volume, indicating a sustained rebound in demand across the country.

During the quarter, all cities saw an increase in per sq ft costs year-over-year (YoY). Bengaluru had the highest year-on-year price growth, at 7%, followed by Pune and Mumbai, at 5% and 4%, respectively.

While financial stress remains a significant problem for developers across markets, Baijal believes that solid and sustained homebuyer activity would pave the path for incremental price rises, allowing them to weather the rising costs of critical inputs such as cement and steel.

The sub-Rs 50 lakh category saw the most sales, accounting for 41% of total sales in the quarter. However, it is worth noting that the upper category, defined as sales of Rs 1 crore or more, witnessed a gain in sales share in this quarter. This segment accounted for 25% of total sales, up from 18% a year before.

The sale momentum in the country's commercial capital was also hampered in the first quarter due to uncurtaining surrounding Omicron, but sales picked up in the second as consumers rushed to close deals before the April 1 implementation of a 1% metro cess and an upward revision in the Ready Reckoner (RR) rates, which will raise the cost of property acquisition in the city.

In the first quarter, new product launches had similar volumes to sales. Launches increased by 3% in the third quarter, with 78,171 new units being added. The only two markets that saw a decrease in launches year over year were Mumbai (-24%) and Pune (- 49%). The NCR market had a significant increase of 692%, while the Kolkata market saw a 141% YoY increase in new units launched, aided by the robust sales volumes that the region has been generating.

Image Source

Also read: Property registrations’ revenue hits record of Rs 12,700 cr in TN

Despite the inconvenience caused by the third wave of the Covid 19 pandemic, residential property sales in the country's top eight cities hit a four-year high in January-March. According to Knight Frank India research, quarterly sales reached a high of 78,627 residential units in the first quarter of the new year, up 9% from the previous quarter, while average capital prices of residential properties rose 1 to 7% in all leading regions as demand remained strong. New property launches totalled 78,171 units throughout these areas, indicating that supply maintained up with demand. During the quarter, Mumbai had the highest volume of sales, with 21,548 units sold, and Delhi-NCR had the biggest year-over-year gain in new home sales, with a 123% increase. For the third straight quarter, sales were substantially above the pre-pandemic average quarterly volume, indicating a sustained rebound in demand across the country. During the quarter, all cities saw an increase in per sq ft costs year-over-year (YoY). Bengaluru had the highest year-on-year price growth, at 7%, followed by Pune and Mumbai, at 5% and 4%, respectively. While financial stress remains a significant problem for developers across markets, Baijal believes that solid and sustained homebuyer activity would pave the path for incremental price rises, allowing them to weather the rising costs of critical inputs such as cement and steel. The sub-Rs 50 lakh category saw the most sales, accounting for 41% of total sales in the quarter. However, it is worth noting that the upper category, defined as sales of Rs 1 crore or more, witnessed a gain in sales share in this quarter. This segment accounted for 25% of total sales, up from 18% a year before. The sale momentum in the country's commercial capital was also hampered in the first quarter due to uncurtaining surrounding Omicron, but sales picked up in the second as consumers rushed to close deals before the April 1 implementation of a 1% metro cess and an upward revision in the Ready Reckoner (RR) rates, which will raise the cost of property acquisition in the city. In the first quarter, new product launches had similar volumes to sales. Launches increased by 3% in the third quarter, with 78,171 new units being added. The only two markets that saw a decrease in launches year over year were Mumbai (-24%) and Pune (- 49%). The NCR market had a significant increase of 692%, while the Kolkata market saw a 141% YoY increase in new units launched, aided by the robust sales volumes that the region has been generating. Image Source Also read: Property registrations’ revenue hits record of Rs 12,700 cr in TN

Next Story
Real Estate

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Next Story
Real Estate

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Next Story
Infrastructure Urban

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement