The residential real estate sector ended CY22 on a high note as sales in the top 8 cities surged to a nine-year high. Total number of units sold is 328000 in CY22; exceeding sales for the first time in the last nine years, aided by robust demand. While unit sales for the top 7 cities grew 34% YoY on a low base, the top 12 listed companies reported 24% growth in pre-sales, leading to a market share of 23% in CY22.

 

Healthy demand momentum is likely to continue for the medium term and expect to report 15% YoY growth in pre-sales for FY24.

 

Launches increased by 41% YoY to 328,000 units, exceeding sales for the first time in the last nine years. Strong demand helped developers pass on the cost pressure, with 4-7% price increases across the top 8 cities. The RBI’s move to tackle inflation with a 225bp increase in the repo rate in the last eight months has led to a 200bp increase in mortgage rates and a corresponding increase in home loan EMIs.

 

While sales in the top 8 cities grew by 34% YoY in CY22 on a lower base, the top 12 listed companies reported 24% growth in sales volume, leading to a marginal drop in the market share of listed peers.

 

Commercial real estate also reported a strong recovery, with gross leasing of over 51msf.

 

Source: Report from Financial Services Company: Mumbai.