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Knight Frank India, in their latest report,noted that 312,666 residential units were sold across top eight markets of India in 2022 (Jan – Dec) registering a growth of 34%year on year (YoY).New home launches also witnessed a significant rise of 41% YoY in 2022 with the addition of 328,129 units in 2022. Mumbai led residential sales in 2022 with 85,169 units, followed by the National Capital Region (NCR) (58,460) and Bengaluru (53,363).

The office sectorin India saw a strong recoveryin demand despite the geopolitical challenges, recording gross office leasing of 51.6 million square feet (mn sq ft), a rise of 36% YoY.New office space completions also grew by 28% YoY to 49.4 mn sq ft in 2022.In terms of the office space demand, Bengaluru led with 14.5 mn sqft followed by NCR with 8.9 mn sq ft transacted areaduring the year 2022.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “For the first time in over a decade we have seen simultaneous growth in all major real estate segments. Office, residential, warehousing and retail, all registered significant increase in activities in 2022. Factors like change in attitude towards home ownership, return to work and increased hiring and proliferation of e-commerce etc. backed by economic stability, allowed India’s real estate sector to benefit last year. This pace of growth is expected to largely remain in the new year owing to continued domestic economic growth. Having said that, India will have to remain cautious the of the global geopolitical and economic challenges as that can cast a shadow on the pace of growth for India.”

Knight Frank India today launched the 18th edition of its flagship half-yearly report - India Real Estate: 2022 – which presents a comprehensive analysis of the residential and office market performance across eight major cities for July-December 2022 (H2 2022) period. 

ALL INDIA RESIDENTIAL UPDATE: H2 2022 (JULY – DECEMBER 2022)  

SALES VELOCITY STRENGTHENED DESPITE RISING HOME LOAN RATES

2022 can be considered a watershed year for the residential sector across the top eight cities of India as after a significant period of decline, there was a substantial rise in sales,setting new decadal benchmarks. Annual sales that saw a rise of 34% YoY with sales of 312,666 units recorded a 9-year high.

Encouraged by this sales velocity, launches also saw a commensurate rise in 2022. A total of 328,129 units were launched across the eight markets registering a rise of 41% YoY.  Mumbai remained the largest market by volume both in terms of sales as well as new launches, followed by National Capital Region (NCR) and Bengaluru. Apart from Kolkata, that saw a slowdown in sales of residential by 10% YoY in 2022, all markets registered growth in both sales as well as new launches.

In terms of 12-month residential price change, Mumbai, NCR, Bengaluru and Pune registered   increments of 7% each. Chennai and Hyderabad witnessed a significant increment of 6% while Kolkata and Ahmedabad witnessed an increment of 4%. A marginal rising of prices is a positive indication of a strengthening market but remained benign so far as impact is concerned as demand was adequately met by supply keeping market dynamics stable.

Commenting on the residential sector performance for the year 2022, Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The residential sector was an exceptional story of growth in 2022, as despite numerous inflictions, the pace of growth remained largely intact.This momentum is the result of a definitive shift in attitude in favour of home ownership that has ignited the latent demand. The shift is so strong that despite some worsening in affordability on account of rising home loan interest rates, sales momentum has remained buoyant. Demand for homes has been furtherstrengthened by continued economic growth, financial and income stability and moderately growing prices. Further, we estimate the pace of sales to remain unchanged in the new year, as most parameters are expected to remain favourable, including levels of inflation that is expected to start stabilising by mid of 2023.”

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