Among the nine major cities, Chennai saw the highest increase in housing prices, at 15%, during the months of April and June.
According to a report by PropEquity, a real estate data, research, and analytics company, housing sales decreased by 7% in the second quarter of 2022 compared to the first quarter as a result of rising interest rates having an impact on affordability.
Pune, Hyderabad, Bengaluru, Mumbai, Chennai, Kolkata, Gurugram, and Noida all saw a decline in home sales in Q2 compared to Q1 of -16%, -1%, -4%, -1%, -17%, -28%, -28%, and -35 percent, respectively. Only Thane experienced a 3 percent increase in sales.
Prices have begun to increase, with Gurgaon experiencing the highest growth on a Q-o-Q basis. Prices in Gurugram rose by 15%, to Rs 11,517 per square foot from Rs 10,315 per square foot. Prices increased by 12 percent year over year.
The analysis shows that Chennai experienced the highest appreciation, at 15%. In Chennai, the weighted average price increased from Rs 5,855 per square foot to Rs 6,744 per square foot in the June quarter, a 15% increase. Hyderabad also experienced a 12% increase, from Rs 5,764 to Rs 6,472 per square foot. In Noida, the average price per square foot increased by 9% to Rs 7,411 from Rs 6,791. Prices in Bengaluru increased 8% to Rs 6,196 per square foot from Rs 5,760 per square foot. Mumbai, Thane, and Pune all saw a 3% increase in housing costs. Residential property prices increased in Thane to Rs 6,325 per square foot from Rs 6,165 per square foot, while they increased in Mumbai to Rs 18,896 per square foot from Rs 18,259 per square foot.
The increasing home loan interest rates over the past few quarters had an impact on sales. It was difficult for prospective homebuyers to locate deals that fit their budgets.
On a Q-o-Q basis, the total number of housing units launched across the top 9 tier cities decreased by 24%, but on a Y-o-Y basis, there was an increase of 51%.
The total number of housing units launched across the top 9 tier cities decreased by 24% on a Q-o-Q basis but increased by 51% on a year-over-year basis.
Additionally, from 91,489 units in Q1 2022 to 69,812 units in the same period, there was a 24 percent decrease in the new supply or new launches of housing units. Thane, Pune, Hyderabad, Bengaluru, Chennai, Kolkata, Noida, and Gurugram all saw a decline in new launches of -23%, -14%, -37%, -32%, -37%, -72%, and 100%, respectively. Only Mumbai experienced a 10% increase in new launches.
“Over the past year, the residential market has seen steadily rising sales and price increases, and there have been no significant COVID-19-related lockdowns in India over the past five months. As a result, developers are delaying new releases to get rid of their stock. We anticipate many developers launching new projects during the upcoming holiday season, particularly in the mid-and premium-priced segments, according to Samir Jasuja, founder and managing director of PropEquity.
Potential buyers have been inquiring frequently about properties that are priced fairly and in good locations. Many of our customers are debating whether to buy a home while waiting for developers to announce offers or schemes. Housing sales have been slightly impacted by inflationary trends, but we anticipate market sentiment to recover in the upcoming quarter, according to Abhishiekh Andlay, founder of Andlay Estates.