NCR records 21% YoY growth in housing unit sales in Q3 2022 | The Financial Express

NCR records 21% YoY growth in housing unit sales in Q3 2022

At an average price increase of 8% YoY, the region recorded the second highest YoY growth in prices across the leading eight Indian cities during Q3 2022.

NCR records 21% YoY growth in housing unit sales in Q3 2022
The residential sector saw an annual growth of 15% in Q3 2022 to 73,691 housing units across the top eight cities in the country from 64,010 in Q3 2021.

The National Capital Region (NCR) recorded sales of 11,014 housing units, which translated into a 21% YoY growth, during Q3 2022. Residential launches also remained robust with 10,265 units getting added to the market; registering a growth of 14% YoY during the quarter, according to India Real Estate Update (July – September 2022) by Knight Frank India.

At an average price increase of 8% YoY, the region recorded the second highest YoY growth in prices across the leading eight Indian cities during Q3 2022.

As per the report, NCR also recorded office transactions of 2.4 mn sq ft, registering a 23% YoY growth in Q3 2022. This is the second highest office transaction volume recorded across eight Indian cities during the quarter. With 1.7 mn sq ft of new office completions, the city accounted for 13% of the total space delivered across leading eight markets during the quarter. The office markets’ rental value remained stable.

INDIAN COMMERCIAL MARKET SUMMARY: Q3 2022

The commercial market in India recorded 7-quarter high in leasing volumes in Q3 2022. Growing by 29% YoY, transaction volumes stood at 16.1 million square feet (mn sq ft) across the top eight cities in India during Q3 2022. The transaction volumes have surpassed the pre-pandemic quarterly average of 2019 by 6%. Notably, quarterly transaction volumes have increased steadily during this year and culminated in a 7-quarter high in Q3 2022. In line with occupier demand, 13 mn sq ft of new office was completed, a 9% increase in YoY terms in Q3 2022. Rentals have also been either stable or witnessed a marginal growth in sequential terms across the top eight cities over the past two quarters.

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Commenting on the same, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “The consistent growth in leasing volumes along with stable to growing rents depicts the strength of the office market. Large scale hiring in the last 18 months, especially in the IT/ ITeS sector and companies implement return to office policies is creating incremental office space demand. This is further complemented by pent-up demand from 2020-21 which together are propelling the office space demand. The momentum seen in the year so far points at annual volumes that could match the record levels seen in 2019.”

INDIAN RESIDENTIAL MARKET SUMMARY: Q3 2022

According to the report, the residential sector saw an annual growth of 15% in Q3 2022 to 73,691 housing units across the top eight cities in the country from 64,010 in Q3 2021. This is a 20% rise in regards to the quarterly average sales observed during the pre-pandemic times of 2019. While the sales volumes remain robust, they have dipped by 8% compared to the preceding quarter.

Considering the steady upward trajectory that sales have stayed on over the past four quarters, this modest dip is not a matter of concern. The demand momentum was strong in Q3 2022 with sales in all markets, with the exception of Kolkata, growing on a YoY basis.

Similar robust activity was observed in new launches growing 15% YoY to 69,687 units in Q3 2022. All markets saw average prices increase in the range of 3% to 10% YoY during this period. This also marks the third quarterly period of consistent YoY growth in prices across all markets. The strong uptick in sales also brought the quarters to sell (QTS) level down to 7.1 quarters from 10.3 quarters in Q3 2021.

Baijal said, “All real estate asset classes have been on the recovery path over the past few quarters; however, the recovery in the residential segment was the swiftest and most substantial. While the increasing interest rates will impact affordability, underlying need for homeownership remains strong. We do not believe that home loan rates approaching the 2019 levels will be enough to subdue market momentum significantly. The performance of the broader economy and homebuyer sentiment will have a greater bearing on market traction for the remainder of the year as it dictates homebuyer income levels and demand much more directly.”

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