In a major fallout of increased property prices and lending rate hikes, the top 7 cities saw housing sales moderate by 15% – from close to 99,550 units in Q1 2022 to approx. 84,930 units in Q2 2022, finds the latest ANAROCK Research data. MMR recorded the highest sales of approx. 25,785 units in Q2 2022, followed by NCR with approx. 15,340 units.
Developers restricted new supply to approx. 82,150 units in Q2 2022 against 89,150 units in Q1 2022 – an 8% decline in the period. MMR and Pune were the only markets to see new launches increase by 26% and 14% QoQ, respectively. The remaining top 5 cities saw reduced new launches.
MMR saw approx. 29,730 units added in Q2 2022, while Pune added approx. 16,560 units. NCR saw a massive 56% drop in new supply – from 9,300 units in Q1 2021 to approx. 4,070 units in Q2 2022.
Commenting on the same, Anuj Puri, Chairman – ANAROCK Group, said, “Inflationary pressures on input costs compelled developers to increase property prices in the past few months, and RBI unleashed two rate hikes that swelled up home loan interest rates. These two factors combined to hike the overall property acquisition cost for homebuyers, leading to a dip in housing sales. The fact that after two years, there was no new Covid-19 wave to disrupt family travel plans during the school vacation months (April to June) could also have impacted sales.”
“As for the declining new launches, developers would have held back fresh supply while they sought clarity on the unfolding market sentiments amid increased housing purchase cost. Given that we saw two back-to-back quarters of robust housing sales and new launches (Q4 2021 and Q1 2022), a dip was to be expected,” added Puri.