According to the Knight Frank India study, the National Capital Region (NCR), Bengaluru, and Mumbai had the most outstanding property sales in the third quarter of 2022.
In the first nine months of 2022, home sales in India's eight largest residential markets increased by 40% to 232,396 units from 163,426 units during the same period in the previous year, according to research by property consultancy Knight Frank India.
The National Capital Region (NCR), Mumbai, and Bengaluru reportedly saw the most property sales in the third quarter of 2022.
In the third quarter (Q3) of 2022, home sales increased from 64,010 units in the previous year's equivalent to 73,691 units throughout the top eight cities, growing at an annual pace of 15%.
A 20% rise in average quarterly sales from the pre-pandemic season of 2019 was also noted in Frank India's real estate update for July to September 2022. Sales, however, fell 8% from the previous quarter.
"All real estate asset classes have been on the recovery road over the previous few quarters, but the recovery in the residential segment was the swiftest and most significant," says Shishir Baijal, chairman and managing director of Knight Frank India. Although rising interest rates will affect affordability, a desire for homeownership still exists.
He emphasised that the most recent repo rate increase by the Reserve Bank of India (RBI) will result in a considerable increase in funding costs for all types of purchases.
"The repo rate hike and limited liquidity would result in a large increase in the cost of finance, which would also affect house loan rates. According to the present patterns, we anticipate that around 50% of this will be transferred to the holders of house loans, says Baijal.
The 21,450 residential units sold in Mumbai represented 29% of the overall sales in the top eight markets. Bengaluru had the second-highest selling volume in Q3 2022, with 13,013 units sold. 11,014 units were sold in the Delhi NCR during that time.