Domestic real estate sector sees fresh signs of recovery, says report
The real estate sector in India has been showing signs of resilience despite higher inflationary trends, higher home loan borrowing costs and a weaker global economic environment.
By Ashutosh Mishra: The Indian real estate sector has seen significant recovery, and for the first time in a decade, home sales have crossed 73 per cent of new launches across nine top regions in India, according to a report by PropEquity.
The strong sales indicates a strong and organized effort from developers to clear launched projects and deliver them on time.
The report pointed out that in Q42022, home sales across India’s top regions accounted for 69,349 newly launched units, a fall of 30 per cent from Q4FY21 at 98,735 units. The top 9 regions saw home sales at 1,20,275 units in Q42022, compared to 1,09,464 units in the corresponding quarter in FY2021.
The maximum jump came from Hyderabad at 24 per cent, followed by Navi Mumbai at 23 per cent, and Mumbai at 22 per cent on a Y-o-Y basis. Only two regions witnessed a fall in Q4, including Delhi NCR at 7 per cent and Chennai at 2 per cent. Overall, home sales saw an increase of 10 per cent in October-December 2022, compared to the same period last year.
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Real estate showing signs of resilience
The real estate sector in India has been showing signs of resilience despite higher inflationary trends, higher home loan borrowing costs and a weaker global economic environment, said the report.
“Despite the many challenges facing the industry, home sales strongly recovered this year. It is worth noting that the demand in the industry and the positive sentiment is growing. Even with the steady rise in mortgage rates, customers were still taking loans in anticipation of appreciation of properties and as end users for the units,” said Samir Jasuja, Founder and Managing Director at PropEquity.
“India is witnessing strong undercurrents in terms of economic recovery and the real estate sector has done better than expectations. The year has ended with high sales in residential real estate, with recorded sales in Q4 CY’22 being the highest in the last recent quarters with limited new launches in Tier-1 cities,” he added.
“The sales across India witnessed a massive jump in Q4 and 2022 as market sentiment for home purchases has improved massively. Many customers who were sitting on the fence are now back on the market finally closing the deals, as evident from the ongoing blockbuster sales by India’s well-known developers. Going ahead, we are going to see more new launches as older inventory is getting off the shelf sooner than expected,” Shiwang Suraj, Founder & Director at INFRAMANTRA said.
Home sales in Q4 across Pune, Thane, Hyderabad, Bengaluru, Mumbai, Navi Mumbai, and Kolkata saw an increase of 3 per cent, 16 per cent, 24 per cent, 2 per cent, 22 per cent, 23 per cent and 1 per cent respectively on a Y-o-Y basis. Delhi NCR and Chennai witnessed a fall of 7 per cent and 2 per cent respectively.
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