Home / News / India /  Housing sales cross 70k units in Q1 2022, sector poised for strong growth this year
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Residential sales in India witnessed unprecedented growth in the first quarter of 2022. The latest CBRE report reveals that residential sales in the country stood at 70,000 units in Q1 of 2022, increasing by a whopping 40% YoY and 13% QoQ.

Of the total sales, 68% were dominated by cities namely Pune, Delhi-NCR, and Mumbai in Q1 2022. Whereas, 68% of the total sales were from the mid-end and affordable / budget categories.

Among key sales drivers, during Q1 2022, the affordable/budget category share was flat at 27% of total sales in Q1 2022 same as the preceding quarter, while mid-end housing reported a drop in total share to 41% in sales.

However, high-end housing witnessed strong growth with the share rising to 23% ( from 16% in Q4 2021) in sales, meanwhile, premium and luxury housing reported an increase to 5% (from 4% in Q4 2021) and 4% (from 2% of Q4 2021) in total share of sales.

Furthermore, in terms of cities that drove sales were Pune, Delhi-NCR, Mumbai, and Bangalore. However, notably, as per the report, Pune witnessed a drop in total share to 27% from 32% in Q4 2021 sales, while Delhi-NCR outperformed with the total share rising to 21% in Q1 2022 versus 16% in Q4 2021. Mumbai and Bangalore's total share remained flat at 20% and 14% sequentially.

In the first quarter, 60,000 residential units were launched higher by 30% YoY but down by 10% QoQ. 70% of the total share was of Pune, Mumbai, and Hyderabad in the unit launches in Q1 2022.

CBRE in its report ‘India Market Monitor – Q1 2022’ also gave an outlook for the country's residential segment. It expects supply and new launches to post a robust performance, adding, "uptick in new launches expected especially in Pune, Mumbai, Hyderabad, Delhi-NCR and Bangalore."

Further, CBRE expects asset pricing trends to remain divergent with an uptick expected on account of growth in sales and rising input and labor costs.

In regards to mid-end and affordable, CBRE expects the categories to drive sales. It said, "We expect these segments to drive sales activity; however, high-end / premium and luxury categories are expected to witness renewed investor interest, fueled by the anticipated appreciation in capital values and increased activity by HNIs and NRIs."

Further, CBRE's note outlines to focus on large unit sizes, plotted developments, and amenities. It says that the growing popularity of hybrid work and sporadic homeschooling driving the need for larger unit sizes; a growing focus on plotted developments as they offer flexibility on configuration and ancillary amenities.

Lastly, for residential, CBRE's note said, "as end-use takes precedence over speculative investment and buyers become more informed, developer reputation, execution capabilities, and financial position would play a bigger role in home purchase decisions."

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