Demand revival pushed home sales up 2.5x in H1CY22, prices up 7%


Home sales in Delhi-NCR rose 2.5-fold annually from January to June on revival in demand and lower base effect, while prices jumped 7 percent, according to property consultant Knight Frank India.

In its latest semi-annual report, “India Real Estate: Residential and Office Market H1 2022,” the consultant said residential property sales increased to 29,101 units from January to June this year, compared to 11,474 units in the corresponding period of 2021.

Sales in the first half of calendar year 2021 were hit by the second wave of the COVID-19 pandemic.

New home launches rose many times over in the reporting period to 28,726 units from 2,943 units.

Property prices rose 7 percent annually from January to June 2022 to Rs.4,437 per square foot.

Residential inventory unsold fell 6 percent to 95,811 units on improved sales performance.

“In the first half of 2022, NCR’s housing market maintained demand momentum with half-year sales of 29,101 units. This is the highest half-year sale since the second half of 2013,” the report said.

With home loan interest rates remaining low throughout the first half of 2022, Knight Frank India noted that continued homebuyer interest in the housing market was sustained.

Regarding property prices, the adviser said many developers have hiked home prices in recent quarters to offset rising input costs.

“Over the past six months, the impact of rising input costs for cement and steel has driven up prices for household products in NCR very significantly. Prices have firmed in many locations due to current demand dynamics,” the report noted.

In the Delhi-NCR office market, Knight Frank said gross occupancy of office space increased 69 percent to 4.1 million square feet from January to June 2022, compared to 2.4 million square feet in the corresponding period last year.

However, new supply fell 17 percent from 3 million square feet to 2.5 million square feet.

Average rents rose 1 percent annually to Rs.81.5 per square foot per month.

“During the first half of 2022, the National Capital Region (NCR) staged a strong comeback, becoming the second-best performing office market among the top eight cities in terms of office occupancy.

“Despite the short-lived third wave of the pandemic, which had minimal impact on residents’ mobility and mindset, a significant increase in office leasing velocity was seen during this period,” the report said.

During the January-June 2022 period, Gurugram accounted for 2.9 million square feet of office space rental, the highest in NCR’s other zones.

Gurugram’s share of NCR’s total lease has increased sequentially over the past year.

“It increased from 52% in the first half of 2021 to 64% in the second half of 2021 and stands at 71% of the total at the end of the first half of 2022,” the report said.

At the end of the first half of 2022, NCR’s office vacancy rate fell 204 basis points to stand at 14.4 percent, he added.

(Only the headline and image of this report may have been edited by Business Standard contributors; the rest of the content is auto-generated from a syndicated feed.)

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