On the back of a resurgence in demand and a reduced base effect, housing sales in Delhi-NCR increased 2.5 times annually between January and June, while prices increased by 7 percent, according to real estate consultant Knight Frank India.
The consultancy reported in its most recent half-yearly report, "India Real Estate: Residential and Office Market H1 2022" that the sales of residential properties increased to 29,101 units in January-June of this year from 11,474 units in the same period of 2021.
Also read:
According to the report, the second wave of the COVID-19 pandemic negatively impacted sales in the first part of the 2021 calendar year. The number of new home releases increased significantly throughout the period under consideration, going from 2,943 to 28,726 units.
During the period of January to June 2022, the price of a square foot of housing increased by 7 percent yearly to Rs 4,437. In spite of better sales results, there were 95,811 fewer residential properties on the market, a six percent decrease.
"In H1 2022, NCR's residential market maintained demand momentum with half-yearly sales of 29,101 units. This is the highest sales clocked in any half-yearly period since H2 2013," the report said. With the prevalence of low home loan interest rates for the most part of H1 2022, Knight Frank India noted that sustained homebuyer interest was maintained in the residential market.
Also read: Housing sales rise 7% in Jan-Mar across 8 cities; avg prices up 7%; new supply up 50%: Report
The consultant firm said that several developers have raised residential pricing recently to offset rising input costs. "In the past six months, the impact of rising input costs for cement and steel have bumped up the residential product pricing in NCR in a very pronounced manner. Due to the current demand momentum, prices have firmed up across many locations," the report noted.
"Significant upswing in office leasing velocity was noticed in this period despite the short-lived third wave of the pandemic which had minimal impact on mobility and occupier mindset," the report said. In January-June 2022 period, Gurugram accounted for 2.9 million square feet of office space leasing, which was the highest across the other zones of NCR.
Gurugram's share in NCR's overall leasing has increased sequentially in the past year. "From 52 percent in H1 2021, it increased to 64 percent in H2 2021 and stands at 71% of the total at the end of H1 2022," the report said.
At the end of the H1 2022 period, NCR's office vacancy reduced by 204 basis points and stood at 14.4 percent, it added.
According to Knight Frank India, lower mortgage rates and lower base effects were the key drivers of the 60 percent annual increase in housing sales that occurred in eight major cities from January to June of this year, totalling 1,58,705 units. This was the biggest half-yearly demand in nine years.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Gonda Lok Sabha election: BJP's Kirti Vardhan Singh takes on Beni Prasad Verma's granddaughter Shreya
May 19, 2024 10:19 PM
Faizabad Lok Sabha election: Can Ayodhya Ram Temple strengthen BJP's stronghold here?
May 19, 2024 10:16 PM
Amethi Lok Sabha election: Can BJP's Smriti Irani retain the Congress bastion she won in 2019?
May 19, 2024 10:12 PM
Rae Bareli Lok Sabha Election: Can Rahul hold on to this Gandhi family bastion?
May 19, 2024 10:09 PM