Housing demand in October-December 2022 rose 19% over last year: PropTiger report

• The demand for properties was maximum in Mumbai and Pune, which together accounted for over 56% in overall sales in 2022.
  
• Overall residential property sales in 2022 recorded a 50% growth over last year.
  
• In terms of new supply in properties, Mumbai accounted for 39% share in overall new launches — which is the highest percentage among other cities, according to the PropTiger report.

The final quarter (October - December) of 2022 witnessed a 19% year-on-year rise in demand for home properties, resulting in a 50% growth in overall residential property sales for the full year, according to a report by online real estate brokerage company PropTiger.com.

This improvement in sales was largely due to improved consumer sentiment on the back of renewed importance of home ownership during the pandemic, and sustained economic recovery post-pandemic, the report said.

"Despite the industry's numerous challenges, housing sales have rebounded strongly this year. It is worth noting that the industry is seeing higher demand and favorable sentiments,” said Vikas Wadhawan, group CFO of Housing.com, Makaan.com and PropTiger.com.

“Despite the steady climb in home loan interest rates, customers have been interested in locking in lower prices rather than fretting about mortgage interest rates, and have been positive about the economy and their future earnings throughout 2022,” he added.

The demand for properties was highest in Mumbai and Pune, which together accounted for over 56% in overall sales in 2022, according to the report titled ‘Real Insight Residential – Annual Round-up 2022 (January - December)’. Mumbai witnessed a steady upswing of 87% year-on-year (YoY) growth in property sales in 2022 — the highest percentage growth among the top eight cities in India.

Mumbai frontrunner in new supply

In terms of new supply in properties, Mumbai had the highest share of overall new launches among the top 8 cities at 39%, according to the report.

This was followed by Hyderabad and Pune, which took shares of 19% and 18% respectively.

“Significantly higher launches in this quarter also indicate that developers are gearing up for the strong quarter of January to March, which is generally the biggest quarter from a sales perspective,” Wadhawan said.

A total of 4.31 lakh units were launched in 2022 – doubling from 2021 levels and a 6% increase from 2015 levels.

New launches in 2022 were mostly concentrated in the ₹1 crore to ₹3 crore price bracket, which accounted for 28% in total new launches.

However, Ahmedabad and Chennai recorded a degrowth – of 21% and 24% respectively – in new launches of home properties in 2022, the report said.

In an effort to tame inflation, the Reserve Bank of India has raised the repo rate – a key interest rate – by 225 basis points so far this year, forcing lenders to raise home loan rates. This, coupled with the premium being charged over ready-to-move-in residential units boosted prices for new supply and existing inventory across top cities of India by 7% YoY at the end of 2022, said the PropTiger report

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