India's residential realty offtake rises 34% in 2022 despite headwinds: Knight Frank India

New Delhi [India], January 11 : As many as 312,666 residential units were sold across top metros in India in 2022, a 34 per cent growth on a yearly basis, data from multinational real estate consultancy services provider Knight Frank showed.
Mumbai led residential sales in 2022 with 85,169 units, followed by the National Capital Region (NCR) at 58,460 units, and Bengaluru at 53,363 units.
Besides, new home launches also witnessed a significant rise of 41 per cent with an addition of 328,129 units last year.
Knight Frank India on Tuesday launched the 18th edition of its flagship half-yearly report - India Real Estate: 2022, which presented an overall analysis of the residential and office market performance across eight major cities for the July-December 2022 period.
Notably, for the first time in over a decade the real estate industry has witnessed simultaneous growth in all major segments, said Shishir Baijal, Chairman and Managing Director, of Knight Frank India.
"Office, residential, warehousing and retail, all registered significant increase in activities in 2022. Factors like change in attitude towards home ownership, return to work and increased hiring and proliferation of e-commerce etc. backed by economic stability, allowed India's real estate sector to benefit last year," Baijal said.
In terms of residential price change in 2022, Mumbai, NCR, Bengaluru, and Pune registered increments of 7 per cent each. Chennai and Hyderabad witnessed a significant increment of 6 per cent while Kolkata and Ahmedabad witnessed an increment of 4 per cent, the report said.
"A marginal rising of prices is a positive indication of a strengthening market but remained benign so far as impact is concerned as demand was adequately met by supply keeping market dynamics stable," it noted.
For 2023, it noted the pace of growth is expected to largely stay intact, owing to continued domestic economic growth with a rider that India will have to remain cautious of the global geopolitical and economic challenges.
On Tuesday, a Pune-focused real estate developer Gera Developments too released their bi-annual report, based on primary and proprietary research.
According to the latest Gera Pune Residential Realty Report 2022, the average prices of homes across Pune city have increased by 10.85 per cent in the past 12 months. It said input costs for developers have forced developers to raise prices.
Across the city, 123 projects have been launched in the luxury segment (with an average price of about Rs 8,300+ per sq. ft.) and have contributed to the significant rise in the average property prices.
"The Pune real estate market has had a good 2022 - this is in line with other real estate markets across the country. Rising interest rates have not had much of an impact on the overall market adversely; while some sales may have been affected, the salary increase over this period has more than compensated for the increase in interest rates," said Rohit Gera, Managing Director, Gera Developments.
The MD added the future, however, has greater uncertainty due to macroeconomic and global factors.
"We see increased global headwinds and layoffs affecting employment in the IT sector. We believe a larger issue in addition to affordability (which at the present time is not a cause for concern), is job security," Gera said. Affordability levels too have seen a slight reduction.
On the outlook, Gera Developments believe India seems relatively less affected regardless of affordability issues and job insecurity.