HomeNewsHousing sales grow 4.5 times in Apr-Jun period

Housing sales grow 4.5 times in Apr-Jun period

According to Australia’s REA group-owned PropTiger, housing sales in 8 major cities in India jumped over 4.5 times year-on-year in April-June across eight cities to 74,330 units on a lower base effect as demand in April-June 2021 was severely impacted owing to the second wave of the COVID pandemic. Demand was up 5 percent from the previous quarter. Housing sales stood at 15,968 units in the April-June period last year and 70,623 units in the January-March quarter of 2022.

The price of residential properties too rose in tandem due to rise in input costs, inflationary pressures, and premiums attached to a ready-to-move-in inventory. Price increase differed from city to city and went up on an average 5-9% annually. Pune and Chennai saw maximum appreciation at 9 percent each.

Vikas Wadhawan, Group CFO of REA India, said, ”Even though the RBI increased the repo rate twice during the quarter, home loans remained largely affordable.” According to him, the biggest booster to housing demand has been the increased importance of owning a property. This has been further backed by consumer confidence in the overall economic scenario and impending income stability.

20 percent of the units sold were ready-to-move-in while the remaining 80 percent were under construction. The majority (26 percent) of the sales were concentrated in Rs 45-75 lakh price range. Residential demand is 80 percent closer to the pre-pandemic levels of Q2 2019.

On the supply side, the launches of new homes jumped to 1,02,130 units during April-June from 21,840 units in the year-ago period. It rose 28 percent from 79,530 units in the previous quarter. PropTiger said that the current unsold stock across eight cities is at 7,63,650 units.

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