Housing Sales Moderate in Q2 2022: ANAROCK

In a major fallout of increased property prices and lending rate hikes, the top 7 cities saw
housing sales moderate by 15 per cent – from 99,550 units in Q1 2022 to 84,930 units in Q2 2022, finds the latest ANAROCK Research data. MMR recorded the highest sales of 25,785 units in Q2 2022, followed by NCR with 15,340 units, the report said.

Developers restricted new supply to 82,150 units in Q2 2022 against 89,150 units in Q1 2022 - an 8 per cent decline in the period. MMR and Pune were the only markets to see new launches increase by 26 per cent and 14 per cent q-o-q, respectively. The remaining top 5 cities saw reduced new launches, the report added.

MMR saw 29,730 units added in Q2 2022, while Pune added 16,560 units. NCR saw a massive 56 per cent drop in new supply – from 9,300 units in Q1 2021 to 4,070 units in Q2 2022.

Anuj Puri, Chairman - ANAROCK Group, says, “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 costs," says Puri. "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.”

New Launches Overview

The top 7 cities recorded 82,150 new units launched in Q2 2022 as compared to 89,150 units in Q1 2022, an 8% decrease over the previous quarter.

The key cities contributing to new unit launches in Q2 2022 were MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, which together accounted for 91% of the new supply addition. Only MMR and Pune saw increased new launches.

Housing Sales Overview

Approx. 84,930 units were sold in Q2 2022 – a 15% decrease over Q1 2022.  NCR, MMR, Bengaluru, Pune, and Hyderabad accounted for 90% of the sales in the quarter.

Available Inventory

Available inventory remained more or less stable at 6.25 lakh units in Q2 2022 (against 6.28 lakh units in Q1 2022) due to low quarterly sales. Annually, however, accumulated inventory declined by 4% across the top 7 cities.

Price Movements

Residential property prices across the top 7 cities saw a quarterly increase of 2-3% in Q2 2022. Annually, prices have risen by between 4 and 7%, primarily due to increased input costs and good demand post-Covid-19.