The real estate sector in India is showing a sharp recovery in the recent period. According to an ANAROCK Research report, “Quarterly housing sales in Q1 2022 are at an all-time high since 2015 with approximately 99,550 units sold across the top 7 cities.” This data shows that it is a 71% yearly rise against approx. 58,290 units were sold previously in Q1 2021. in addition to that, new launches across the top 7 cities have witnessed a 43% yearly increase, from 62,130 units in Q1 2021 to more than 89,150 units in Q1 2022. MMR and NCR are the two most significant areas for the real estate sector in India, which have accounted for more than 48% of the total sales among the top 7 cities. Additionally, NCR is also witnessing an above 114% yearly jump. With this sharp rise in the sector, investors are again gaining confidence and thinking more about investing in housing.
Along with new launches, the unsold inventory in the top 7 cities has also seen an approximately 2% yearly decline – from 6.42 lakh units towards Q1 2021-end, to approximately 6.28 lakh units by Q1 2022-end. A similar trend was seen on a quarterly basis.
“The bull run in the housing market continued in the first quarter of 2022, with approx. 10% q-o-q and 71% y-o-y growth in sales, thus recording all-time high quarterly sales since 2015. The impact of the third Covid-19 wave was significantly lower than of the preceding two waves. The unrelenting appetite for home-ownership amid the pandemic has coupled with a growing certainty of impending price rises to speed up housing sales velocity,” Anuj Puri, Chairman of ANAROCK Group has commented about this growth.
During the Russia-Ukraine war, investors were flocking toward commodities like gold. Significantly equities have seen a sharp fall in India. This had worried investors. However, the situation is changing now. The Russian government is being soft about the war. So, the gold rates are staying under pressure. At this moment, investors can start thinking about other investment instruments like real estate. With the sector’s sharp recovery, both on a yearly and quarterly basis, it has considerable potential to grow further.
