Housing sales in tier-1 cities in 2022 set to cross previous peak of 2014

Total sales in top-7 cities is expected to exceed 360,000 units this year; the previous peak in the year 2014 was 343,000 units

Infrastructure, DFI, workers, contruction, realty, real estate, property, workers, labour — Housing sales remained strong despite average property prices rising in 2022, with the annual appreciation in the third quarter of 2022 being the best in the past seven years, at six per cent over the Q3 of CY21

2 min read Last Updated : Oct 26 2022 | 10:51 PM IST

The momentum in housing sales momentum persisted during the first three quarters of the current calendar year and could breach the previous peak of 2014 to achieve all-time high sales across the top-7 cities. The total sales in the top-7 cities is expected to exceed 360,000 units in 2022.

According to ANAROCK research, the previous peak was achieved back in 2014 with 343,000 units sold in the top-7 cities.

The January-September period of 2022 saw housing sales and new launches surpass the full-year readings of 2019 with about 273,000 units sold in the first nine months of 2022. New launches were around 265,000 units.

In 2019, over 261,000 units were sold, while new supply stood at 234,000 units.

Mumbai Metropolitan Region and North Capital Region have retained their top slots in the first nine months of 2022. About 130,450 units were collectively sold in these two regions, accounting for 48 per cent of the total sales in the top-7 cities. Other high-selling cities were Pune, Bengaluru and Hyderabad, which accounted for a cumulative sales share of 42 per cent.

Housing sales remained strong despite average property prices rising in 2022, with the annual appreciation in the third quarter of 2022 being the best in the past seven years, at six per cent over the Q3 of CY21.

Current trends indicate that launches in these cities will exceed 340,000 units in the whole of 2022. The first nine months of the year saw 265,000 units launched in the top-7 cities, with MMR and Hyderabad recording the maximum new launches during this period, at 54 per cent of the total new supply.

A combination of end-user and investor demand continues to zero in on projects by large and listed developers. These players report consistently high sales and are stepping up new supply infusions into the market. Total new launches in 2022 will remain lower than the previous peak of 2014, when about 545,000 homes were launched across the top-7 cities.