New housing supply up 43% to 80k units across 6 cities in Jan-Mar: Report

Fresh housing supply rose 43 per cent quarter-on-quarter across six cities during January-March to around 80,000 units, mainly driven by a revival in the demand for residential properties, according to proptech firm Square Yards.

Technology-led real estate consultant Square Yards sells homes on behalf of builders and facilities home loans to consumers.

In its report 'India Residential Overview: Jan-Mar 2022', Square Yards has covered Hyderabad, Bengaluru, MMR (Mumbai Metropolitan Region), Pune, Noida and Gurugram.

"The top six cities witnessed the new launch of close to 80,000+ housing units, noting an exorbitant Q-o-Q rise of 43 per cent.

"The year 2022 has started on a positive note with both sales and new launches witnessing improved numbers across top cities," Square Yards said.

Strongly rooted in high homeownership sentiment, the realty sector during the first quarter of 2022 has predominantly remained end-user driven.

The MMR continued to retain its top position in the number of new residential units launched. Hyderabad inched up a little, attracting the interest of big builders in the market.

According to the data, the MMR contributed 35 per cent to the total new launches during the January-March quarter across six cities.

Hyderabad's share in total launches stood at 25 per cent, followed by Pune 17 per cent, Bengaluru 16 per cent, Gurugram 5 per cent and Noida 2 per cent.

"Even though home buying trends in the post-Covid era has been largely influenced by the need for space, health and wellness amenities, demand trends in Q1, 2022 shifted slightly towards smaller units," the report said.

The first quarter of 2022 recorded a 42 per cent share of the total online searches for 2BHK units, a rise of 3 per cent compared to Q4 2021.

The demand for 3BHK homes dropped slightly.

However, the consultant said this shift seems to be completely transient.