Home sales in India’s top 9 cities fell by 7% in a sequential quarter (Q2 vs Q1) as developers across cities focussed on clearing earlier launched inventories, according to a report released by PropEquity.
Sales were also impacted as home loan interest rates increased over the last several quarters, impacting affordability. Potential home buyers are also finding deals in their price brackets to be challenging as projects of renowned developers have seen appreciation.
As per the report, total units launched across the top 9 Tier-I cities witnessed a drop of 24% on a Q-o-Q basis, however, a growth of 51% was witnessed on a Y-o-Y basis.
Similarly, sales or absorption saw a drop of 7% on a Q-o-Q basis, while a growth of 96% was witnessed when compared to the same period last year.
The unsold inventory has dropped by 5% when compared to last quarter and an 11% drop was witnessed when compared on a Y-o-Y basis.
Home sales across Pune, Hyderabad, Bengaluru, Mumbai, Chennai, Kolkata, Gurugram, and Noida dropped in Q2 vs Q1 at -16%, -1% -4%, -1%, -17%, -28%, -28%, -35%, respectively. Only Thane saw an increase in sales at 3%.
Also, the new supply or new launches of housing units decreased by 24% in the same period to 69,812 units from Q1 2022 at 91,489 units. New launches across Thane, Pune, Hyderabad, Bengaluru, Chennai, Kolkata, Noida and Gurugram fell -23%, -14%, -37%, -32%, -37%, -72%, and -100%, respectively. Only Mumbai saw an increase in new launches by 10%.
Commneting on the same, Samir Jasuja, Founder and Managing Director at PropEquity, said, “Residential market has been witnessing steady growth in sales and price appreciations over the last one year and the last 5 months have witnessed no major COVID-related lockdowns across India. This has led to developers holding off new launches to clear existing inventories. We believe in the upcoming festive seasons we will see many developers launching new projects especially in the mid and premium segment.”
“We have been witnessing strong queries from potential buyers for rightly priced and located properties. Lots of our customers are sitting on the fence for developers to announce some offers or schemes to make their buying decisions. Inflationary trends have impacted housing sales slightly, but we expect market sentiment to tide over this in the next quarter,’’ said Abhishiekh Andlay, Founder of Andlay Estates.