Despite an uptick in overall interest rates, house demand has not fallen. In the third quarter of 2022, 1,04,820 units were introduced, matching the average quarterly level of 1,00,000 units in 2015.
The real estate market has recovered with a strong buyer attitude with festival season approaching. According to a Real Estate Company report, the third quarter (Q3) of the current fiscal year increased by 61% year on year (YoY) compared to the third quarter last year. It increased by 3% from the second quarter.
In the third quarter of 2022, 104,820 units were introduced, matching the average quarterly level of 100,000 units in 2015. According to the research, the majority of new supply in Q3 2022 was concentrated in the Rs 1-3 crore price bracket, accounting for 32%, closely followed by the Rs 45-75 lakh price range (31%).
Residential sales increased by 49% year on year to 83,220 units between July and September 2022, compared to 55,910 units sold in the same period last year.
Mumbai and Pune remain at the top of the rankings. In Q3 2022, the two cities accounted for 53% of total sales. Properties priced between Rs 45 and Rs 75 lakh accounted for 27% of all sales.
"The data patterns and insights show that the real estate business is recovering from the epidemic and related interruptions." "With the Christmas season just starting, we're seeing a steady increase in consumer attitude toward property investments," said Group CFO, prominent real estate websites.
He stated that the third quarter saw a considerable improvement in home demand, which would set the tone for the fourth quarter.
Despite a slight uptick in overall interest rates, house demand has not fallen. "The analysis indicates that demand for residential homes has reached pre-pandemic levels in Q3 2019," the expert stated.
The real estate industry is short on ready-to-move-in inventory. Approximately 19% of the apartments sold were ready-to-move-in (RTMI), with the rest 81% under construction or new launches. According to the poll, 58% of potential homebuyers sought RTMI residences.
According to the report, property prices in the top eight cities — Ahmedabad, Delhi NCR (Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), Chennai, Bengaluru, Hyderabad, Kolkata, Mumbai metropolitan region popularly known as MMR (Boisar, Dombivli, Mumbai, Mazagaon, Panvel, Thane West), and Pune — increased by 6% year on year in Q3 2022.
Inflationary pressures, increases in input costs, and premiums offered for ready-to-move-in residences all continued to push up property prices in major cities.
According to the study, the inventory overhang has decreased significantly, falling to 32 months in Q3 2022 from 44 months in Q3 2021. This is due to the sector's continued sales momentum as it rebounds from the pandemic's damage. In Q3 2022 (24 months), Kolkata had the lowest inventory overhang, while Delhi NCR had the largest (62 months).
Furthermore, in Q3 2022, the entire unsold inventory was at 7.85 lakh units, with approximately 21% of the unsold inventory in the top 8 cities falling into the RTMI category.