2022 has been a buoyant year for the economy, and the COVID-induced slowdown of 2020 and 2021 is finally a thing of the past. For the real-estate sector especially, 2022 brought in record commercial and residential sales and a boom that’s expected to thrive in 2023.
The real-estate industry witnessed a gradual increase in property rates in 2022. This rise in rates was mainly because of the hike in prices of raw materials like steel and cement. Despite this, the appetite for homeownership remained undeterred. Market research by property consultancy firms points to the fact that maximum sales of residential units in the last year being driven by the end-users.
The research, which took into consideration the property sales in seven cities – Mumbai Metropolitan Region, Pune, NCR, Bengaluru, Hyderabad, Kolkata and Chennai, mentions that all cities saw year-on-year growth in property sales.
Hyderabad (89%) and Kolkata (62%) were the two cities which witnessed maximum growth and unit absorption in the previous year. Pune recorded the third-highest price escalation in the real estate sector in the country in 2022 and bagged the third spot in the list.
In terms of the increase in price per square foot area, Pune saw rates rise to around Rs 6,000 as against Rs 5,733 in 2021. Mumbai Metropolitan Region and Bengaluru recorded the highest price rise of 7%. Kolkata, on the hand, saw a 4% rise, which was the lowest in the country.
Pune also witnessed the launch of 64,343 new units in 2022 compared to 39,869 units in 2021. It was, however Mumbai Metropolitan Region which reported the highest launches in 2022, with a growth rate of 114 %. Pune’s real estate market saw an absorption of 64,343 units against the 35,975 units sold in 2021.
Industry experts say that despite all the headwinds like rising property prices, interest rate hikes and geopolitical tensions, 2022 has been a phenomenal year for residential real estate. The housing sales in the top 7 cities where research was conducted breached the previous highs.
Experts had widely anticipated that the rise in property costs and interest rates towards the second half of 2022 would have a cascading impact on residential sales. However, Q4 of 2022 remained quite robust, and as many as 92,160 units were sold in the period. They expect this momentum to carry forward this year as the demand and appetite for homeownership remain steadfast.
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Sources:
- https://www.punekarnews.in/real-estate-pune-recorded-59-increase-in-sales-of-housing-units-in-2022/
- https://www.msn.com/en-in/news/other/pune-records-third-highest-price-appreciation-in-real-estate-in-2022-research/amp/ar-AA15JR4n
- https://indianexpress.com/article/cities/pune/pune-price-appreciation-real-estate-research-8348768/