Sales For Apartments Priced Above INR 1.5 Crore Surge

BY Realty+

The two larger markets of Delhi NCR and Mumbai saw maximum sales in the quarter in this price bracket. Apartments priced above INR 1.5 crore had a share of 15% in the quarterly sales in Q2 2022. The higher levels of residential sales in the premium category show increased demand for bigger homes and buyer confidence coming back to the market. However, apartments in the price bracket between INR 50 lakh-75 lakh still had a larger share of 28% in the residential sale during the quarter. Bengaluru and Pune recorded the majority of the respective city sales in this price category according to JLL’s Residential Market Update – Q2 2022.

“India’s residential market has shown remarkable resilience in the last year. Sales of more than 105,000 units were recorded in H1 2022 which is an increase of 119% Y-o-Y as compared to H1 2021. This certainly indicates that the market sentiments are improving compared to the previous year. Sales got a boost from many factors including lower COVID-19 cases, pick up in economic activity, and a stable employment scenario. The residential market has charted a new chapter of growth in H1 2022” said Siva Krishnan, Head - Residential, India, JLL.

The increase in input costs and the strong demand has caused an appreciation in residential prices with capital values showing a 3-7% Y-o-Y increase across all cities except Hyderabad which showed resilience by clocking double-digit price growth over the same period “Developers have partially passed on the input cost increases which are now reflected in the current residential prices. New launches also entered the market at higher prices. With interest rates in an upcycle, costs for owning a house are likely to increase further. This may cause some short-term deflation in demand but with changing dynamics around home ownership and with interest rates still on the lower side, residential demand is likely to remain on its growth trajectory,” said Dr. Samantak Das, Chief Economist, and Head Research & REIS, India, JLL.

Sales penetration -defined as % of apartments sold versus total available inventory is a marker of how markets actually performed on a normalized basis, accounting for varying levels of unsold inventory across all cities. Compared to this metric, the sales penetration for H1 2022 was at an average of 18% at a pan-India level. Sales penetration was highest in Pune (28%) with Bengaluru and Kolkata (21%) joint second. Both Pune and Kolkata are smaller markets in absolute sales terms of apartments, but they perform much better on a normalized comparison when sales penetration is considered.

Tags : Sales Apartments Surge Dr. Samantak Das Chief Economist and Head Research & REIS India JLL Delhi NCR Mumbai