Guest Blog: Housing Sales Bull Run Continues In Q1 2022
Quarterly housing sales in Q1 2022 are at an all-time high since 2015 with approx. 99,550 units sold across the top 7 cities, reveals the latest ANAROCK Research data. This is a 71% yearly rise against approx. 58,290 units sold back in Q1 2021. The two leading realty hotspots – MMR and NCR – accounted for over 48% of the total sales in the top 7 cities, with NCR witnessing an over 114% yearly jump.
New launches across the top 7 cities witnessed a 43% yearly rise – from 62,130 units in Q1 2021 to over 89,150 units in Q1 2022. As in the previous quarter, MMR and Hyderabad saw the maximum new supply, accounting for 51% of the total new launches across the top 7 cities. Individually, the two cities saw 59% and 71% yearly increases in their new supply, respectively.
Despite spiraling new launches in this and the previous quarter, unsold inventory in the top 7 cities saw an approx. 2% yearly decline – from 6.42 lakh units towards Q1 2021-end to approx. 6.28 lakh units by Q1 2022-end. Even on a q-o-q basis, the unsold stock saw a 2% dip across the top 7 cities. Chennai, MMR, and NCR saw the highest yearly declines in Q1 2022 – by 11%, 10%, and 9%, respectively.
“The bull run in the housing market continued in the first quarter of 2022, with approx. 10% q-o-q and 71% y-o-y growth in sales, thus recording all-time high quarterly sales since 2015. The impact of the third Covid-19 wave was significantly lower than of the preceding two waves. The unrelenting appetite for homeownership amid the pandemic has coupled with a growing certainty of impending price rises to speed up housing sales velocity” said Anuj Puri, Chairman- ANAROCK Group.
New Launch Overview
The top 7 cities recorded new launches of around 89,150 units in Q1 2022 against 62,130 units in Q1 2021, increasing by 43% over the previous year’s corresponding period. The key cities contributing to new launches in Q1 2022 included MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, together accounting for an 82% supply addition.
- MMR saw approx. 23,640 units launched in Q1 2022 – a significant increase of nearly 60% over Q1 2021. More than 57% new supply was added in the sub-INR 80 lakh budget segment
- Hyderabad added approx. 21,550 units in Q1 2022, a yearly increase of 71% over the corresponding period last year. Over 63% new supply was added in the INR 80 lakh to INR 2.5 Cr price bracket
- Pune added new supply of approx. 14,490 units in Q1 2022 compared to 13,820 units in Q1 2021 – an increase of 5%
- Bengaluru added approx. 13,210 units in Q1 2022, a significant yearly increase of 72%. Approx. 65% new supply was added in the mid-range and premium segments, i.e., the INR 40 Lakh – INR 1.5 Cr. price bracket
- NCR saw an increase of 38% in new launches over Q1 2021 of the previous year with approx. 9,300 units launched in Q1 2022
- Chennai added approx. 3,060 units in Q1 2022, a yearly decrease of 34% over Q1 2021. It was the only city to see a decline in new supply
- Kolkata added approx. 3,900 units in Q1 2022, a significant increase of 115% over Q1 2021. Approx. 55% new supply was added in the affordable segment
| City-wise New Supply (in Units) & Percentage Change | |||||||||||
| Cities | Q1 2022 | Q1 2021 | % Change (Q1 2021 vs Q1 2022) | Q4 2021 | %Change (Q4 2021 vs Q1 2022) | ||||||
| NCR | 9,300 | 6,750 | 38% | 12,720 | -27% | ||||||
| MMR | 23,640 | 14,820 | 60% | 18,680 | 27% | ||||||
| Bangalore | 13,210 | 7,690 | 72% | 8,580 | 54% | ||||||
| Pune | 14,490 | 13,820 | 5% | 10,840 | 34% | ||||||
| Hyderabad | 21,550 | 12,620 | 71% | 15,320 | 41% | ||||||
| Chennai | 3,060 | 4,620 | -34% | 1,670 | 83% | ||||||
| Kolkata | 3,900 | 1,810 | 115% | 5,960 | -35% | ||||||
| Total | 89,150 | 62,130 | 43% | 73,770 | 21% | ||||||
Source: ANAROCK Research
Overall Sales Overview
Approx. 99,550 units were sold in Q1 2022 – a significant increase of 71% over Q1 2021. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 89% of sales in the quarter.
- Hyderabad recorded sales of 13,140 units in Q1 2022, a massive spike of 199% over Q1 2021 – mainly due to the continuous flow of new supply in the city over the past 5-6 quarters
- NCR and Kolkata also saw massively increased sales in Q1 2022 when compared to the other top cities. Sales in NCR and Kolkata increased by 114% and 124% respectively over Q1 2021, with approx. 18,835 and 5,990 units sold, respectively
- MMR and Bengaluru saw housing sales increase by 43% and 55% respectively in Q1 2022 against Q1 2021, with approx. 29,130 and 13,450 units sold, respectively
- Chennai saw approx. 4,985 units sold – an increase of 75% over Q1 2021
- Pune saw 14,020 units sold in Q1 2022, increasing by 33% over Q1 2021
| City-wise Absorption (In Units) & Percentage Change | |||||||||||
| Cities Name | Q1 2022 | Q1 2021 | % Change (Q1 2021 vs Q1 2022) | Q4 2021 | %Change (Q4 2021 vs Q1 2022) | ||||||
| NCR | 18,835 | 8,790 | 114% | 17,575 | 7% | ||||||
| MMR | 29,130 | 20,350 | 43% | 27,680 | 5% | ||||||
| Bengaluru | 13,450 | 8,670 | 55% | 12,305 | 9% | ||||||
| Pune | 14,020 | 10,550 | 33% | 11,930 | 18% | ||||||
| Hyderabad | 13,140 | 4,400 | 199% | 11,030 | 19% | ||||||
| Chennai | 4,985 | 2,850 | 75% | 4,680 | 7% | ||||||
| Kolkata | 5,990 | 2,680 | 124% | 5,660 | 6% | ||||||
| Total | 99,550 | 58,290 | 71% | 90,860 | 10% | ||||||
Source
Available Inventory
When compared to Q1 2021, the increase in overall absorption in the top 7 cities in Q1 2022 resulted in an overall reduction of 2% in the available inventory by Q1 2022-end – from approx. 6.42 lakh units in Q1 2021-end to approx. 6.28 lakh units by Q1 2022-end. Chennai, MMR, and NCR witnessed the highest reductions in available inventory in Q1 2022 when compared to Q1 2021 – by 11%, 10%, and 9% respectively.
Price Movement
Average residential property prices across the top 7 cities increased in the range of 2-5% in Q1 2022 when compared to Q1 2021, mainly due to an increase in the prices of construction raw materials. Hyderabad recorded the highest 5% annual jump.
About the author- Anuj Puri, Chairman – ANAROCK Group