- The first quarter of 2022 started on a positive note. Amid the receding impact of Omicron and a significant decline in caseload, the housing sales across the top eight metro cities witnessed decent percent growth QoQ.
- New supply in the quarter increased. Over 500 projects were added in the period, including new launches as well as under-construction housing societies.
- Average property prices increased marginally in the studied period. However, amid the average construction costs rising due to oil price hike, realtors in Mumbai and Delhi NCR threatened to stall construction or increase the home values in case of no respite.
- In the backdrop of offices reopening and espousing hybrid model, the rental market witnessed some transactions after many quarters. The vacancy rate across major cities saw a gradual downtrend.
- Net office space absorption across the metro cities jumped two-fold YoY. The leasing rate grew in all cities, barring Bangalore, which witnessed nearly 30 percent dip to 1.67 million sq ft.
INDIAN REALTY AT A GLANCE
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
99ACRES' OUTLOOK
The first quarter of 2022 started on a positive note. Amid the receding impact of Omicron and a significant decline in caseload, the housing sales across the top eight metro cities witnessed around 8-10 percent growth QoQ. Delhi NCR, Mumbai and Bangalore remained the leading markets amid diluting COVID norms, increased homeownership appetite, and the impending hike in stamp duty charges in Maharashtra, starting April 1, 2022.
New supply in the quarter increased approximately by 24 percent QoQ. Over 550 projects were added in the period, including new launches as well as under-construction housing societies. Western cities witnessed maximum new supply occupying over 75 percent market share. Mumbai led the pack with three-digit growth with over 235 housing projects, while Pune followed suit with around 150 projects added to the city. However, new launches in the latter were marginally lesser than in the previous quarter. Despite improved fresh supply, the unsold residential inventory in the quarter ending March 2022 slipped to around five percent to 6.5 lakh units.
Average property prices increased marginally by a percent in the studied period. However, amid the average construction costs increasing by approximately 12 percent due to oil price hike, realtors in Mumbai and Delhi NCR threatened to stall construction or increase the home values in case of no
respite.
In the backdrop of offices reopening and espousing hybrid model, the rental market witnessed some transactions after many quarters. The vacancy rate across major cities saw a gradual downtrend; however, the lull created by multiple variants of COVID refrained landlords from resorting to pre-COVID rental rates.
