Sales of residential units in the Rs 1.5-crore plus price tag increased by over 270% year-on-year with the two larger markets of Delhi-NCR and Mumbai witnessing maximum sales in the quarter in this price bracket. Apartments priced above Rs 1.5 crore had a share of 15% in the quarterly sales in Q2, indicating that the there is an increased demand for bigger homes and buyer confidence is coming back to the market.
However, apartments in the price bracket between Rs 50 lakh and Rs 75 lakh still had a larger share of 28% in the residential sales during the quarter. Bengaluru and Pune recorded the majority of the sales in this price category according to JLL’s Residential Market Update — Q2 2022.
The overall residential market recorded sales of over 53,000 units in Q2, which is an increase of 171% y-o-y across the top seven cities. “This demonstrates the rising demand due to containment of the pandemic and buyer confidence coming back to the market. On a sequential basis, sales increased by 3% in Q2.
Appreciation in residential prices due to rising input costs and interest rates led to almost flat sequential growth in Q2 2022. Mumbai is the largest contributor to sales at 23% followed by Bengaluru with 21% and Delhi-NCR with 19% of the overall sales,” JLL noted.
On a sequential basis, the sales growth is flat at around 3%, with rising prices and interest rates showing some effect. Mumbai and Bengaluru accounted for 45% of the total sales in H1. Quarterly launches are up 6% quarter-on-quarter, led by Mumbai and Hyderabad. Prices have moved up by 3-7% y-o-y across all cities driven by robust sales pace and developers having passed on the increase in input costs in recent times.
Samantak Das, chief economist, and head research & REIS, India, JLL, said, “Developers have partially passed on the input cost increases which are now reflected in the current residential prices. New launches also entered the market at higher prices. With interest rates in an upcycle, costs for owning a house are likely to increase further. This may cause some short-term deflation in demand but with changing dynamics around home ownership and with interest rates still on the lower side, residential demand is likely to stay on its growth trajectory.”
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