Demand recovery boosts H1CY22 home sales 2.5x, prices up 7%

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Home sales in Delhi-NCR jumped 2.5 times a year from January to June on the back of recovering demand and lower base effect, while prices rose 7%, according to real estate consultant Knight Frank India.

In its latest semi-annual report “India Real Estate: Residential and Office Market H1 2022”, the consultant said residential property sales rose to 29,101 units in January-June this year from 11,474 units during the corresponding period of 2021.

Sales in the first half of calendar year 2021 were impacted by the second wave of the COVID-19 pandemic.

New home launches jumped multiple times from 2,943 units to 28,726 units during the review period.

House prices have appreciated by 7% per annum to reach Rs 4,437 per square foot from January to June 2022.

Unsold residential property inventory decreased 6% to 95,811 units due to improved sales performance.

“In the first half of 2022, NCR’s residential market maintained demand momentum with half-year sales of 29,101 units. This is the highest sales recorded in a half-year period since the second half of 2013.” , says the report.

With the prevalence of low interest rates on home loans for most of the first half of 2022, Knight Frank India noted that sustained homebuyer interest was maintained in the residential market.

Speaking of real estate prices, the consultant said many developers have raised home prices in recent quarters to absorb rising input costs.

“Over the past six months, the impact of rising input costs for cement and steel has driven residential product prices in the NCR up very steeply. Due to current demand dynamics , prices have firmed in many places,” the report said. Noted.

In the Delhi-NCR office market, Knight Frank said gross letting of office space increased by 69% to 4.1 million square feet in Jan-June 2022 from 2.4 million square feet squares during the corresponding period of the previous year.

New supply, however, fell 17% to 2.5 million square feet from 3 million square feet.

Average rents increased by 1% per year to reach 81.5 rupees per square foot per month.

“In the first half of 2022, the National Capital Region (NCR) made a strong comeback and established itself as the second best performing office market among the top eight cities in terms of office space leasing.

“A significant increase in office rental velocity was seen during this period despite the short duration of the third wave of the pandemic which had minimal impact on occupant mobility and mindset,” indicates the report.

During the period January to June 2022, Gurugram accounted for 2.9 million square feet of office space rental, which was the highest in other areas of the NCR.

Gurugram’s share of NCR’s overall leasing has increased sequentially over the past year.

“From 52% in the first half of 2021, it rose to 64% in the second half of 2021 and stood at 71% of the total at the end of the first half of 2022,” the report said.

At the end of the first half of 2022, NCR’s office vacancy decreased by 204 basis points and stood at 14.4%, he added.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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