Demand To Be Strong In 2022; Uptick In Unit Launches Expected This Year


After being hit by the COVID-19 pandemic for about two years, the residential sector is poised for a powerful 2022 as each gross sales and new launches are set for a sturdy efficiency after exhibiting resilience final yr. Housing gross sales within the March 2022 quarter jumped almost 13 per cent quarter-on-quarter to over 70,000 items and gross sales rebounded considerably by about 40 per cent year-on-year, based on a report by actual property consulting agency CBRE South Asia.

“The affordable/ budget segment’s share in sales remained stable at 27 per cent in Q1 2022 vis–vis Q4 2021. While sales in the high-end category jumped to 23 per cent in Q1 2022 as against 16 per cent in Q4 2022 , those in the mid-end segment dropped to 41 per cent in this quarter. The premium and luxury housing segments also witnessed a slight uptick in sales on a QoQ basis,” the report said.

It added that new unit launches jumped by nearly 30 per cent yoy to cross the 60,000-unit mark in Q1 2022. With shares of 43 per cent and 30 per cent, mid-end and high-end categories dominated new launches in the country.

“Continued policy push by the government (especially to the affordable and mid-end segments), improved vaccination coverage, revival in economic activity coupled with attractive mortgage rates are likely to aid a strong performance by the residential sector,” stated Anshuman Magazine, chairman & CEO (India, South-East Asia, Middle East & Africa) of CBRE.

The report also highlighted that cities in the western part of the country continued to drive sales as well as unit launches. Pune led housing sales in the March 2022 quarter with a 27 per cent share, followed by Delhi-NCR (21 per cent), Mumbai (20 per cent) and Bengaluru (14 per cent). In terms of unit launches, Pune dominated among cities with a 29 per cent share, followed by Mumbai (22 per cent) and Hyderabad (20 per cent).

“While we believe that mid-end and affordable categories would continue to drive sales, premium and luxury categories have also witnessed renewed investor interest, fueled by the anticipated appreciation in capital values ​​and increased activity by HNIs and NRIs,” stated Gaurav Kumar and Nikhil Bhatia, managing administrators for capital markets and residential enterprise, CBRE India.

The Outlook Going Forward

The report stated an uptick in new launches is predicted, particularly in Pune, Mumbai, Hyderabad, Delhi-NCR and Bengaluru. The rise in capital values ​​is probably going; asset pricing developments would stay divergent with an uptick anticipated on account of progress in gross sales and rising enter and labor prices.

It added that mid-end and inexpensive classes will drive gross sales. However, premium and luxurious classes are anticipated to witness renewed investor curiosity.

The report additionally stated the workplace leasing exercise is predicted to strengthen additional within the coming quarters on account of a mixture of pent-up demand and enlargement/ consolidation-led leasing as occupiers begin to realign their post-pandemic enterprise methods.

Prime malls and excessive streets are prone to stay essentially the most sought-after areas. Churn throughout these key locations might enable some retailers a chance to find/ scale up throughout these areas and malls, CBRE stated.

An improve in actual property investments of 5-10 per cent yoy is predicted over the 2021 funding worth; and greenfield property are prone to expertise sturdy funding uptick, it stated.

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