Pune, September 19,2022: Like the last quarter, the housing sector carried on with its unprecedented momentum in Q2 2022 and surprisingly outshined, even though it was under stress from external headwinds. As per Square Yards research, in Q2 2022, new residential launches saw a whopping 170% YoY rise, with the launch of >79,000 new housing units across the top six cities. Whereas the new launches in MMR, Pune, and Gurugram recorded a yearly rise of more than 250% (Q2 2022 Vs Q2 2021), the increase in new launch volumes was a significant 80% more in Bengaluru and Hyderabad as well.
The quarterly trends for new supply in Q2 2022 however varied to some extent as anticipated. Attributed to the surge in property prices and hike in lending rates, the new launches of housing units witnessed a small quarterly dip of 2% in Q2 2022. Further, only MMR and Gurugram saw a quarter-on-quarter rise of 16% and 12% respectively, while new launches in other top cities reverberated the same restrictive developers’ sentiments
Further, reverberating upbeat strong demand momentum, as observed in the previous quarter, in Q2 2022 also, MMR residential market put forth a strong footing with the launch of 30,000+ new residential units. Being only a select few key markets, MMR noted a quarter-on-quarter rise of 8% with respect to the new launches, indicating a positive stance of the developers’ community.
With interest rates in an upcycle and housing prices rising, this may act as a sentiment-disrupter for homebuyers for a short period of time. However, the rates are still on the lower side and with strong latent demand and buoyant consumer confidence, residential demand may see to continue to maintain its upward growth trajectory.
Given below is the capsule version of how the Q2 2022 fared for the residential sector.
Key highlights of the report:
Demand-Supply dynamics and New Launches
· New project launches in the top six cities recorded a yearly rise of 171%, though a small dip in quarterly trends was witnessed. MMR once again contributed the highest share of 38%, followed by Pune which accounted for 21% of the total new launches.
· With a 38% share of the total online searches in Q2, 2022, MMR was the most searched city, followed closely by Hyderabad at 22%.
Mid-segment properties in the budget bracket of Rs 30-60 Lakhs and Rs 60-100 Lakhs were the most searched by online property seekers in Q1, 2022
Rooted in strong developers’ confidence, more than 43% supply of 3BHK configurations were noted in Bengaluru and Gurugram for Q2, 2022.
Interestingly, while mid segment properties continued to be the most preferred for homebuyers in Q2 2022 with 57% of the total demand share, the demand share of premium category residential units (units worth >Rs 1Crore) inched up by >10% as compared to Q1 2022.
Plotted developments are once again on the cards with a 24% share of the total property searches across the top six cities. Cities namely Gurugram, Noida and Pune lead the searches for plots, forming about >33% of the total property searches share in the respective cities.
Residential property transactions highlights (H1 2022):
· MMR leads the charts with >70,000 residential property transactions in H1 2022.
· This was followed by Pune which recorded 43,000+ residential transactions during H1 2022.
Corporate Comm India(CCI Newswire)